Philippines’ Global Ferronickel, China’s Baiyin to set up $700m steel plant

Visual from Global Ferronickel's website

Listed nickel producer Global Ferronickel Holdings Inc (FNI) and China’s Baiyin Nonferrous Group Co Ltd are partnering to set up a stainless steel plant in the Philippines estimated to cost up to $700 million.

FNI chairman Joseph Sy and Baiyin chairman Liao Ming signed a Memorandum of Cooperation (MoC) during President Rodrigo Duterte’s state visit to China to boost trade and economic collaboration between the two nations.

FNI is the second largest nickel producer in the Philippines and the largest single lateritic mine exporter in the world. Baiyin is a major state-owned enterprise formed in the Gansu province and is one of the largest producers of non-ferrous metals in China.

FNI and Baiyin announced they will evaluate investments in value-added downstream projects in the Philippines, including the feasibility of constructing an integrated 200-series stainless steel plant in the Philippines with an annual capacity of one million tonne using lower grade nickel ore sourced in the Philippines, an estimated total investment of around $500 million to $700 million.

Also Read: PH’s Global Ferronickel secures controlling stake in PGMC for $4.5m

Sy said, the company recognises the importance of promoting close cooperation with China to spur economic growth in the country.

“We see Baiyin as a strong partner who will play a vital role with us in creating greater value added in the nickel value chain in the Philippines,” Sy said.

Baiyin has a total asset value of over $7 billion (RMB45 billion) and has produced over 5.5 million tonnes of base metals over the past 60 years. The key stakeholders of Baiyin are the State-Owned Assets Supervision and Administration Commission of the Gansu Province and CITIC Guoan Group.

Baiyin Group is focusing on building a Tier 1 international resources company and has successfully developed mining investments in South Africa, Peru and the Democratic Republic of the Congo.

Also Read: Philippines: Nickel Asia’s THPAL stake acquired by Japan’s SMM for $42m

The MoC is intended to promote closer industrial cooperation as both companies recognise the economic benefits arising from the availability of low-cost nickel ore in the Philippines.

FNI is one of the lowest cost producers of nickel ore in the Philippines.  FNI is a key supplier to major customers in China. Nickel ore is a key ingredient in China’s production of stainless steel, coins, rechargeable batteries and special alloys. China is the largest consumer of nickel in the world, accounting for around 50 per cent of world consumption.

FNI’s last trading price increased 8.70 per cent or P0.100 to close at P1.25.

Also Read:

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PH mining co AMIC seals $15.47m equity deal with Gem Global

Aboitiz Equity-CRH combine acquires 99% of Lafarge Republic in PH

Anglo Holdings sells NTDCC stake for $28.5m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.