LISTED mining firm Global Ferronickel Holdings, Inc. or FNI plans to pursue value-added processing of nickel to meet growing demand amid the transition to cleaner energy and electric mobility.
“These processing capabilities enable the company to enhance the value of its nickel products by transforming them into higher grade materials that cater to specific industry needs,” FNI President Dante R. Bravo said during the company’s virtual annual stockholders meeting on Thursday.
In his presentation to shareholders, Mr. Bravo also said the company seeks to expand its logistics business under its unit Mariveles Harbor Corp. (MHC) by developing warehousing facilities and container terminal services, among others.
In February, the nickel ore producer acquired an additional 24% stake in MHC, bringing its ownership to 88% and gaining greater control over the operations of the port.
“By enhancing its logistic capabilities, the company aims to improve efficiency, reduce costs and strengthen its position as a reliable provider of integrated services throughout the supply chain,” Mr. Bravo said.
FNI also plans to “diversify its operations” by venturing into cement manufacturing and producing limestone, clinker, and other key materials used in the industry.
“This enables the company to tap into the construction and infrastructure sectors, which offers significant growth potential,” he said.
In 2022, FNI saw its net income surge 9% to P2.16 billion from P1.98 billion in the previous year. The increase came despite revenues dropping 12.7% to P6.73 billion, which it attributed to “adverse weather.”
“As we move forward, we will leverage the opportunities by Ipilan Nickel Corp. and optimize our operations ensuring a prosperous future for our country,” Mr. Bravo said.
In April, FNI announced that its subsidiary Platinum Group Metals Corp. (PGMC) in Cagdianao, Surigao del Norte had commenced its nickel ore shipments in China with 55,300 wet metric tons.
Mr. Bravo said the outlook for the nickel industry “remains compelling” amid demand for the mineral in the clean energy transition.
“On the demand side, we see tremendous opportunities from megatrends that will shape the world. These are fundamental drivers particularly urbanization for megacities and energy transition,” he said.
Global Ferronickel is a holding company with principal business interests in mineral resource exploration, mining, and exporting of nickel ore. Its subsidiaries include PGMC, MHC, FNI Steel Corp., and FNI Steel Landholdings Corp.
On Thursday, FNI shares remained at P2.46 apiece. — Sheldeen Joy Talavera
