Posted on 07 Oct 2022
Philippine-listed mining firm Global Ferronickel Holdings, Inc (FNI) has inked a deal to acquire a 20% stake in Guangdong Century Tsingshan Nickel Industry (GCTN), Kallanish notes.
The deal was done through the purchase of shares in GHGC Holdings, Ltd (GHL), which owns 90% of the GCTN stock portfolio.
Global Ferronickel has signed a deal to acquire a 22.22% interest in GHL for $75 million.
GCTN is a nickel alloy enterprise in China operating one of the world’s advanced smelters with rotary kiln-electric furnace (RKEF) technology in a 33-hectare facility employing over 600 employees.
The plant uses a rotary kiln technology that produces about 28,000 tonnes of pure nickel annually.
GCTN caters to customers in Guangdong’s Economic and Technological Development Zones and abroad.
“The acquisition is expected to create reliable and consistent synergies between FNI as a nickel ore supplier and GCTN as a value-added processor, and support our ongoing diversification projects to boost profitability,” FNI president Dante Bravo says.
This initiative will help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain, he says.
To complement its expansion targets, he adds the company continues to pursue investments in high-growth firms and industries that can enhance operational and cost efficiencies.
FNI counts Platinum Group Metals Corporation (PGMC) as a subsidiary and Ipilan Nickel Corporation (INC) as an affiliate.
PGMC is a leading nickel ore producer, while INC has just conducted its maiden shipment of nickel ore to China.
Source:Kallanish
