Global Ferronickel Holdings bares expansion plans amid higher nickel demand

By: Philippine Resources July 03, 2023

Listed Global Ferronickel Holdings, Inc. (FNI) remains bullish about the outlook for the nickel industry as it aims to expand its business to take advantage of the higher demand for nickel. 

"Certainly, the outlook for the nickel industry remains compelling. On the demand side, we see tremendous opportunities from many trends that will shape the world," said FNI president Dante Bravo during the company's annual stockholders meeting on Thursday.

Bravo said growth of the industry will mostly be driven by the urbanization of mega cities and energy transition.

"As you know, more people now live in cities than in rural areas and this is set to continue and while income and population growth have long been the key determinants of commodity demand, including nickel, evidence shows that urbanization can be very important for commodity consumption over the next 30 years, especially in emerging markets and developing economies," he said.

Bravo said the further reopening of China's economy and its infrastructure investment plan will also boost the demand for stainless steel.

In terms of energy transition, Bravo said nickel was earlier identified by the World Bank as one of the critical minerals in the clean energy transition.

"Importantly, nickel is considered cross cutting because it is used in a variety of technologies and is not dependent on a single application," he said.

In the medium to long-term, nickel demand is projected to grow further due to its wide range of applications in renewable energy technologies and critical infrastructure including electric vehicles, solar panels, power grid systems, wind turbines, and new technologies such as hydrogen-based energy.

Bravo said the Philippines and Indonesia will continue to be top nickel producing countries.

To take advantage of these opportunities, FNI plans to expand its nickel resource by investing in exploration and development activities to ensure a sustainable supply for future operations.

The company also plans to venture into value-added processing which include the establishment of a ferronickel processing plant, nickel matte processing, battery-grade nickel plant, and steel plant.

"The establishment of a battery grade nickel plant and a steel plant signifies the company's commitment to capitalizing on emerging opportunities in the electric vehicle and infrastructure sectors," Bravo said.

Aside from these, FNI is likewise looking to expand its logistics business in Mariveles, Bataan and venturing into cement manufacturing.

"This involves the production of limestone, clinker, and other key materials used in the cement industry. This enables the company to tap in the construction and infrastructure sectors, which offer significant growth potential," Bravo added.

FNI's subsidiaries include Platinum Group Metals Corporation (PGMC), Surigao Integrated Resources Corporation, PGMC-CNEP Shipping Services Corp., and PGMC International Limited.


Article courtesy of the Philippine News Agency

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