Very seldom does a Filipino company buys into a foreign partner such as what Global Ferronickel Holdings Inc (FNI)., a wholly- owned Filipino company early this month when it bought 20 percent stake in Guangdong Century Tsingshian Nickel Industry Co. Ltd. (GCTN) from GHGC Holdings Ltd.
GCTN is a nickel alloy enterprise in China operating one of the world’s advanced smelters with RKEF technology in a 33-hectare facility employing over 600 employees, business blog spot Bilyonaryo said.
The plant uses a rotary kiln technology that produces about 28,000 tons of pure nickel annually.
GCTN caters to customers in Guangdong’s Economic and Technological Development Zones and abroad.
“The acquisition is expected to create reliable and consistent synergies between FNI as a nickel ore supplier and GCTN as a value-added processor, and support our ongoing diversification projects to boost profitability,” said FNI president Dante R. Bravo.
This initiative will help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain. (See https://opinyon.net/national/phl-nickel-ore-exporters-buys-20-chinese-firm).
To complement its expansion targets, FNI continues to pursue investments in high-growth firms and industries that can enhance operational and cost efficiencies.
FNI counts Platinum Group Metals Corp. (PGMC) as a subsidiary and Ipilan Nickel Corp. (INC)as an affiliate. PGMC is a leading nickel ore producer, while INC has just conducted its maiden shipment of nickel ore to China.
In its website, Global Ferronickel Holdings Inc., a listed company in the Philippine Stock Exchange (FNI) named its subsidiaries as Platinum Group Metals Corp (PHMC), Surigao Integrated Resources Corp, PGMC-CNEP Shipping Services Corp. and PGMC International Limited.
In 2016, it celebrated the 10th year anniversary of its Cagdianao Nickel Expansion Project, the nickel ore mining operations of our subsidiary PGMC with area covering 4,376 hectares.
We have come a long way since 2006. In less than a decade since our first commercial shipment in 2007, our Cagdianao mine has set the world record of shipping one of the largest annual production volumes of 6 million wet metric tons (WMT) from a single laterite mining project. We have become the second largest nickel ore exporter in the Philippines, accounting for 11 percent of the country’s nickel ore production in 2015, according to Mines and Geosciences Bureau (MGB). Thus far, we have delivered an aggregate of over 37 million WMT of nickel ore to our customers.
In a disclosure, FNI said it signed a share purchase agreement to acquire 22.22 percent of GHL (GHGC Holdings Ltd.) for $75 million.
“This initiative will help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain,” Global Ferronickel said.
“To complement its expansion targets, the company continues to pursue investments in high-growth firms and industries that can enhance operational and cost efficiencies,” it added.
Global Ferronickel said it is diversifying its investments towards high-growth firms and industries that can provide operational synergies and improve cost efficiencies to complement the growth potential of the company’s nickel mining business.
“The business diversification initiatives will provide risk reduction and optimal value to stakeholders. This results in vertical integration of the value chain,” it added.
Global Ferronickel has interests in nickel ore mining, logistics, cement and steel production and port operations.