Posted on 04 Jan 2024
Philippine nickel firm Global Ferronickel has sealed a deal to supply Class II nickel to Chinese steelmaker Baowu Steel Group, Kallanish learns.
According to a statement by Global Ferronickel, its subsidiaries Platinum Group Metals Corporation (PGMC) and Ipilan Nickel Corporation (Ipilan), have inked the annual sale and purchase agreement with Baosteel Resources International, a wholly-owned subsidiary of Baowu.
Under the agreement, Baosteel would purchase up to 1.5 million wet metric tonnes (wmt) of nickel ore for the year 2024 at a price that is determined monthly, based on the prevailing market price at the time of sale.
About two-thirds of the nickel ore to be sold is expected to be low grade with 0.90% nickel and 48% iron, and between 1.30% and 1.40% nickel with 15% to 25% iron. The remaining one-third will be medium grade with 1.40% and above nickel and 12% to 23% iron. The material will be sourced from Global Ferronickel’s operating mines in Surigao del Norte and Palawan, in the Philippines.
Global Ferronickel shipped 4.76 million wmt last year, of which 380,000 wmt were sold to Baosteel. Used mainly in stainless steel production, nickel improves resistance against corrosion and oxidation at elevated temperatures. It enhances important properties such as formability, weldability and ductility.
Source:Kallanish
