Listed Global Ferronickel Holdings Inc., or FNI, one of the country's largest nickel producers, welcomed 2024 by forging a sale and purchase agreement with China-based Baosteel Resources International Co. Ltd.

FNI released a stock report on Tuesday announcing that its subsidiaries, Platinum Group Metals Corp. and Ipilan Nickel Corp, have signed a deal with Baosteel covering 1.5 million wet metric tons or WMT of nickel ore throughout the year.

According to the company, the prices of nickel ore supply sold to Baosteel will be determined every month based on the current market price at the time of the sale.

"We are proud to work with Baosteel and continue our long-term relationship. This agreement and our long history together demonstrate our customer's confidence in our business and provide further recognition of our efforts in maintaining a reliable supply chain to meet the demands for Baosteel products throughout the Asia-Pacific region and internationally," FNI president Dante Bravo said.

"With almost 10 years of relationship, we believe our collaboration aligns with FNI's mission of providing metals and minerals that are essential for greener, more sustainable products required in everyday life," he added.

About two-thirds of the nickel ore to be sold is expected to be low grade with 0.90 percent nickel and 48 percent iron, and between 1.30 percent and 1.40 percent nickel with 15 percent to 25 percent iron.

The remaining one-third will be medium grade with 1.40 percent and above nickel and 12 percent to 23 percent iron. It will be sourced from FNI's operating mines in Surigao del Norte and Palawan.

FNI ended 2023 with 4.763 million WMT shipped volume, with 3.297 million WMT from PGMC and 1.466 million WMT from Ipilan. A total of 0.379 million WMT were sold to Baosteel.