Investing.com - Financial Markets Worldwide
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Philippines' Global Ferronickel sees steel venture operational by 2021

Published 06/26/2019, 02:34 PM
Updated 06/26/2019, 02:40 PM
Philippines' Global Ferronickel sees steel venture operational by 2021
FNI
-

MANILA, June 26 (Reuters) -
* Global Ferronickel Holdings Inc FNI.PS , the Philippines'
second-largest nickel ore producer, said on Wednesday it expects
to bring its planned rebar processing plant up and running by
2021, as the company seeks to boost profitability amid growing
domestic demand for steel products.
* The project, a joint venture with Hong Kong-based Huarong
Asia
Ltd, will require an initial investment of $20 million, plus $10
million for capital expenditures, Global Ferronickel President
Dante Bravo said in a media briefing.
* The joint venture will process billets imported from China
into rebars, and will also bring in Chinese equipment to operate
the plant with an annual capacity of 600,000 tonnes, he said.
* Steel demand in the Philippines, one of world's
fastest-growing
economies, is forecast to rise as much as 6% this year to a
record 11.1 million tonnes, driven mainly by the government's
massive infrastructure spending, according to industry group
Philippine Iron and Steel Institute. * The project will be financed using internal cash and
loans,
Bravo said.
* Global Ferronickel, which sells all its nickel ore to
China, has
lowered its shipment target this year to about 5 million wet
metric tonnes (wmt), from an initial goal of 5.7 million wmt,
citing dwindling output from its main Caga-2 mine. * The miner has opened its Caga-3 mining area this year,
which
will enable it to ship an average 5 million wmt of ore annually
in the next few years, Bravo said. * The Philippines is China's second-biggest supplier nickel
ore,
but its annual shipment is just a fraction of what comes from
No. 1 producer Indonesia.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.