Global Ferronickel Holdings Inc. is off to a good start this year, signing supply contracts with three of the biggest stainless steel producers in China.
President Dante Bravo on Monday said the company has secured commitments for 4.5 million wet metric tons of nickel ore for one year based on spot prices.
The orders represent almost 90 percent of Global Ferronickel’s 2016 production target.
Tsingshan, whose products have been used to build China’s first ever aircraft carrier, is committed to buy 2.5 million WMT; iron and steel conglomerate Baosteel has placed an order for 1 million WMT; and Shanghai International Trade has a similar order of 1 million WMT.
“We are very excited with our prospects for 2016. We have managed to reduce contracted operating costs by as much as 30 percent to remain very competitive,” Bravo said in a statement.
“We would also like to express our appreciation to our long-standing customers for their continued patronage and unwavering confidence,” he added.
Global Ferronickel’s operations in Cagdianao, Claver in Surigao del Norte has the distinction of being the largest single mine producer in the country today.
Its mining season usually begins in April and ends in October due to favorable weather conditions.