Hong Kong — Global Ferronickel Holdings, the second largest nickel ore producer inthe Philippines, said Monday that it has agreed to supply 1.5 million wet mtof nickel ore to Chinese buyer Guangdong Century Tsingshan Nickel Industry atspot price for the 2018 mining season.
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The latest offtake arrangement between Global Ferronickel's operatingsubsidiary Platinum Group Metals and Guangdong Century Tsingshan is formedium-grade nickel ore with high iron content -- minimum nickel content of1.5% and minimum iron content of 30% -- the company said in a media statementfiled with the Philippine Stock Exchange.
The offtake volume, however, is 500,000 wmt less than the 2017 level of 2million wmt agreed by the two parties for that year.
Guangdong Century Tsingshan has been a customer of Platinum Group Metals'medium-grade saprolite ore since 2014, Global Ferronickel added.
Platinum Group Metals mines nickel ore from Cagdianao in southern DinagatIslands province. It produced 6.15 million wmt of nickel ore in 2017, anincrease of 34.7% on the year.
Shipment from the Cagdianao operations amounted to 5.97 million wmtnickel ore last year, 38.6% up from 2016.
The 2017 shipments, which were sold largely to Chinese customers,comprised 3.64 million wmt of low-grade nickel ore, up 52% year on year, and2.33 million wmt of high- and medium-grade nickel ore, 21.8% up on the year. For 2018, Global Ferronickel has set a shipment target of 6 million wmtfor Platinum Group Metals, subject to weather conditions.
The Philippine nickel ore business is a seasonal one, with bothproduction and shipment tending to fall sharply during the rainy season whichusually runs from December through March.
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--Edited by Pankti Mehta, email@example.com