Posted on 07 Jan 2025
Nickel ore producer Global Ferronickel Holdings Inc (FNI) has announced its decision to scrap its $50-million steel rebar project in Bataan, Philippines, Kallanish notes.
The firm says in a statement that upon assessment of its strategic priorities, its board of directors was informed by the management of FNI Steel Corporation that it will no longer pursue its planned steel rebar project, which it has explored since 2019.
This decision follows a comprehensive review of market conditions, capital requirements, and the outlook of the steel rebar industry. The company believes it is in its best interest to focus on opportunities from its current businesses that offer greater long-term value. It notes that nickel ore mining and export, port operations and logistics, and ferronickel smelting continue to see strong demand driven by the global transition to clean energy and electric vehicles.
In line with this decision, FNI Steel Corporation will also initiate the de-registration process with the Authority of the Freeport Area of Bataan (AFAB).
While the steel project will not proceed, it has generated value for the company through the acquisition of land in Bataan that has appreciated in value. These assets will be strategically evaluated for profitable use.
Source:Kallanish
