LISTED miner Global Ferronickel Holdings Inc. disclosed that its subsidiary, Surigao Integrated Resources Corp. (SIRC), has acquired additional land in Surigao del Norte contiguous to its Surigao mine, which would enable it to further expand its resource base.
FNI said its subsidiary acquired an exploration permit located at Parcel 1 of the Surigao Mineral Reservation covering an area of 927.92 hectares.
Lawyer Dante Bravo, FNI president, said that the recently acquired property is located within the nickel ore rich Surigao Mineral Reservation.
“The acquisition is consistent with the company’s plans for growth and comes off the heels of its purchase of the Ipilan Nickel mine in Palawan,” Bravo said
The acquisition increases FNI’s total exploration play area by 16.3 percent from the current 5,701 hectares to 6,629 hectares.
Bravo said they anticipate the exploration site to yield positive results, which would further deepen their already strong operating capacity.
The company is one of the lowest cost producers in the industry and is pursuing production expansion from different mines as they continue their growth strategy in pursuit of their vision to be the largest natural resource company in the Philippines.
FNI earlier reported that the Ipilan mine in Palawan has moved forward with its permitting process and expects to start production within the fourth quarter of 2016 to complement the seasonal weather pattern of their Surigao mine.
Once operational, Ipilan will provide FNI with nickel production for the entire year.
“Our Ipilan mine will be a major contributor to our earnings in the future. So when Ipilan comes into operation, this will significantly increase our capacity to match the top producer in total ore export sales,” the company said.
FNI said that the shipment volume for this year would likely be similar to that of 2015, citing contractual commitment by three big Chinese customers for a total of 4.5 million wet metric tons (WMT) for 2016.
“This gives the company the assurance of good results for this year despite a challenging market environment for commodities. Most importantly, the company would remain to be profitable and have strong cash flow because of cost reduction measures and a better mix of higher quality ores,” FNI said.