FNI targets to ship 6-million WMT of nickel ore this year

Global Ferronickel Holdings, Inc. (FNI), the second-largest nickel producer in the country, is targeting to ship 6 million wet metric tons (WMT) of nickel ores this year on the back of expanded operations.

This is higher than the 5.62 million WMT of nickel ores the company shipped in 2020, said FNI President Dante R. Bravo.

Bravo also said the opening of the company’s Cagdianao Area Deposit (CAGA) 1 next month is expected to boost the capacity of its operating arm in Surigao del Norte, Platinum Group Metals Corporation (PGMC), by 10 percent.

Just recently, PGMC already commenced shipment of nickel ore to its customers in China.

“We are confident in hitting this year’s target, weather permitting with the opening of CAGA 1,” Bravo said in a statement.

The opening of CAGA 1, together with CAGA 2, CAGA 3, and CAGA 4, brings to four the operational mining areas of PGMC.

The firm's forecast sales mix is 70 percent low-grade nickel ore and 30 percent medium-grade nickel ore.

PGMC’s capital expenditure for the year is pegged at US$5 million or more than P242 million.

Last January, FNI announced that PGMC’s proven and probable ore reserves in its Cagdianao nickel mine went up by 37 percent to 59.45 million WMT from the 43.3 million WMT estimates made in October 2019.

Based on an annual production of 6.0 million WMT of ore, the Cagdianao Nickel Expansion Project’s estimated mine life is approximately ten years.

“Continuous exploration is being conducted, especially in CAGA 2, CAGA 3, and CAGA 4, to extend the mine life further and to search for other potential resource commodities such as limestone and chromite,” Bravo said.
“We are also looking at developing CAGA 5 into a biodiversity conservation area,” he added.

At present, FNI’s marketable ores are all shipped to buyers in China, while the higher-grade ores are also being shipped to Japan.

Just recently, PGMC received the 2020 Platinum Achievement Award for Surface Mining Category of the Presidential Mineral Industry Environment Awards (PMIEA).

The PMIEA, pursuant to Executive Order No. 399, series of 1997, recognizes the exemplary practices and commitments of entities involved in underground and surface mining operation, quarry operation, mineral exploration, and mineral processing.

This is the second time in a row that PGMC garnered such an award.