Global Ferronickel, China's Baiyan enter strategic cooperation deal

Publicly-listed Global Ferronickel Holdings Inc. (FNI) on Friday said it has signed a memorandum of cooperation (MOC) with China's state-owned Baiyin Nonferrous Group Co. Ltd. during President Duterte's four-day state visit to China.

FNI told the Philippine Stock Exchange that the deal was signed by Joseph C. Sy, chairman of FNI, and Liao Ming, chairman of Baiyin.

Both parties intend to "develop a long-term strategic partnership and work closely together in evaluating the economic feasibility of various natural resources projects in the Philippines, including but not limited to, providing trade financing to the operations of FNI’s Ipilan mine in Palawan."

FNI and Baiyin will also cooperate and evaluate investments in value-added downstream projects in the Philippines, such as the construction of an integrated 200-series stainless steel plant with an annual capacity of 1 million tons using lower grade nickel ore, an estimated $500 million to $700 million investment.

Both companies recognize the economic benefits of a partnership arising from the availability of low-cost nickel ore in the Philippines and China's large growing demand for nickel ore, 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 percent of world consumption.

“We recognize 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.

For his part, Liao Ming said he is looking forward to a long and mutually beneficial partnership with FNI.

Baiyin is a state-owned enterprise formed in the Gansu Province. It mines and produces various nonferrous metals. — Ted Cordero/VDS, GMA News