Global Ferronickel Holdings Inc. acquired a 40-percent stake in a Bataan port operator for P450 million as part of diversification plans.
GFNI said in a disclosure to the stock exchange Friday it subscribed to 1.67 million shares in Seasia Nectar Port Services Inc. (SNPSI), which operates the first purpose-built Dry Bulk Terminal within the Freeport Area of Bataan in Mariveles.
“Our investment in SNPSI paves the way for the successful operations of our steel processing plant located in proximity to the terminal,” said FNI president Dante Bravo.
“It helps ensure we have easy and steady access to port services given that FNI Steel relies heavily on the importation of raw materials especially during this period of construction,” he said.
The terminal handles shipments of coal, clinker, silica sand and cement raw materials, as well as steel, fertilizer and other dry bulk cargoes.
SNPSI started out as a joint venture company among Seasia Logistics Philippines Inc., Nectar Group Ltd., and Web Technologies Inc.
The mining company earlier announced it was investing $50 million to build a rebar steel rolling plant to take advantage of the growing demand for steel as a result of the government’s Build, Build, Build infrastructure program.
The steel manufacturing facility will be 51 percent owned by GFNI while joint venture partner Huarong Asia Limited (Huarong), a Hong Kong-based company, will own the balance.
The facility, to be completed over the next two years, is estimated to have an annual output of 600,000 tons of steel bars.
GFNI is the second-largest nickel ore exporter in the Philippines.
GFNI saw its net income increased 35 percent to P805 million in the first nine months of its year from P595 million year-on-year.
Revenues rose 5.4 percent to P4.79 billion from P4.54 billion in the first nine months of 2018 due on higher average nickel prices.