Nickel Ore producer Global Ferronickel on track to meet 6M WMT shipment target

Global Ferronickel Holdings Inc. (FNI), the country's second-largest nickel ore producer, is on track to meet a shipment target of 6 million wet metric tons (WMT) this year, banking on the renewal of its permit in Surigao del Norte and additional supply from the Palawan mine.

"Weather permitting, we expect to meet our 2017 target of 6 million WMT," FNI President Dante R. Bravo disclosed to the Philippine Stock Exchange.

As of June 27, the company has shipped out 1.747 million WMT, at a year-to-date average price of $18.4 per WMT.

In July 2016, the Department of Environment and Natural Resources (DENR) renewed the company's mineral production sharing agreement (MPSA) covering the 4,376-hectare Cagdianao mine.

Global Ferronickel exports its production to China, which processes nickel ore for manufacturing stainless steel.

The agreement gives the miner the benefit of government assistance in mineral production. While the government is the owner of the minerals, the miner provides the necessary financing, technology, management and personnel for extracting the minerals.

FNI also acquired the right to explore an additional 843 hectares of land adjacent to the Cagdianao mine in Surigao del Norte.

"The acquisition presents an opportunity to enhance the company's nickel ore resources without requiring significant expenditures for mine infrastructure development," it said.

The company expects output to get a boost from the production in its Palawan mine.

"Moving forward we would like to commence production at our Palawan mine site; develop and upgrade existing resources and reserves within the Cagdianao deposit areas; evaluate and selectively pursue value-added opportunities..." Bravo said. — Jon Viktor Cabuenas/VDS/KVD, GMA News