ORE RESERVES of a Global Ferronickel Holdings, Inc. (FNI) subsidiary have climbed by 37% to 59.45 million wet metric tons (WMT) based on its latest estimates, the parent firm told the local bourse on Tuesday.
The figure represents FNI’s projection of proven and probable ore reserves for its unit Platinum Group Metals Corp. (PGMC), as of Oct. 15, 2020. The increase in reserves were attributed to the exploration activities in PGMC’s Cagdianao (CAGA) Nickel Expansion Project in Dinagat Island, Surigao del Norte.
“The estimate represents a 37% increase from the 43.3 million wet metric tons reported during the same period last year,” FNI said in a regulatory filing.
It added that the CAGA nickel project’s estimated mine life is at 10 years. The firm also detailed its plans to conduct more exploration activities, excavate other minerals and develop a portion of its mining site into a conservation area.
“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. We are also looking at developing CAGA 5 into a biodiversity conservation area,” Dante R. Bravo, the president of FNI, said in a statement.
FNI said that China is the current destination of its ore shipments, and that its higher-grade ores would be exported to Japan “when the need arose.”
In November, the company, through PGMC, inked a nickel supply deal with Chinese firm Baosteel. Under the agreement, FNI would supply 1.3 WMT of nickel ore this year.
In its third-quarter report, FNI’s net income rose by 94.51% to P1.36 billion year on year. The firm previously told the local bourse that its mining operations from July to September climbed by 33% to P4 billion compared with the value in 2019.
FNI is a holding firm with principal business interests in mineral resource exploration, and the mining and exporting of nickel ore.
Shares in FNI on Tuesday inched up 1.01% to close at P2.99 apiece. — Angelica Y. Yang