Politics

Global Ferronickel says affiliate firm completes first ore export to China

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GLOBAL Ferronickel Holdings, Inc. affiliate Ipilan Nickel Corp. has completed its maiden shipment of nickel ore for export to China, the listed holding firm said on Tuesday.

Ipilan Nickel exported 54,700 wet metric tons (WMT) of medium-grade nickel ore to Guangdong Century Tsingshan Nickel Industry Co., Ltd. in China (GCTN) from its mine site in Brooke’s Point, Palawan.

“After years of careful planning and regulatory compliance, this inaugural shipment is a remarkable milestone for our group and bodes well for the country’s economic and social governance goals at this critical time,” Global Ferronickel Chairman Joseph C. Sy said in a press release.

Ipilan Nickel’s target for the year is 500,000 WMT amid increased production with the start of year-round operations, according to Mr. Sy.

Under its mineral production sharing agreement with the government, the mining company is authorized to engage in the exploration, development and utilization for commercial purposes of nickel and other mineral deposits in Palawan with an area of 2,835 hectares.

The estimated mine life is at least 10 years with an annual production rate of 1.5 million WMT of medium-to-high-grade nickel ores.

“We are proud of this development because it sets the tone for the optimal pursuit of our social development and environmental protection objectives,” Mr. Sy said, adding that the affiliate “can now roll up the score in community engagement with various socio-civic initiatives in place from the beginning of our operations.”

Ipilan Nickel said it is also planning to implement projects that will support education, wellness, and livelihood development. It has also identified infrastructure as its primary focus “with the establishment of a mini-hydro power plant and farm-to-market roads.”

Global Ferronickel is a holding company with principal business interests in mineral resource exploration, mining, and exporting of nickel ore.

In the second quarter, the company’s net income dropped by 16.2% to P615.58 million from P734.56 million in the previous year.

Revenues from contracts with customers likewise declined by 12.5% to P2.17 billion from P2.48 billion.

Ipilan Nickel is owned by Southeast Palawan Nickel Ventures, Inc., an associate of Global Ferronickel.

On Tuesday, Global Ferronickel shares ended higher by 2.55% or six centavos to close at P2.41 apiece. — Luisa Maria Jacinta C. Jocson