Nickel Asia to sell nickel ore to China's Baosteel


Posted at Nov 22 2011 10:57 AM | Updated as of Nov 22 2011 06:57 PM

MANILA - The Philippines' largest nickel producer, Nickel Asia Corp., said on Tuesday it had signed a deal to supply close to 2 million wet metric tons (WMT) of lateritic nickel ore to China's Baosteel Resources Co Ltd next year. 

The volume accounts for about half of Baosteel Resources' annual import requirements, the local miner said in a statement. Pricing details were not disclosed. 

Baosteel Resources is a wholly owned unit of Baosteel Group or Baoshan Iron & Steel, China's largest listed steelmaker.

"This represents a significant milestone for both companies, the result of a mutually beneficial cooperation between two industry leaders," Nickel Asia president Gerard Brimo said in a statement. 

He also said Nickel Asia's Taganito mine in the southern Surigao del Norte province has completed its first shipment of nickel ore following the raid by Maoist rebels in early October.

Shipments from Taganito from January to November are expected to hit 10 million WMT, he said.  

Shares of Nickel Asia, partly owned by Japan's Sumitomo Metal Mining Co Ltd, were untraded in early deals on Tuesday as the main stock index slipped 0.7%.