NiHAO to supply Glencore with nickel for a year
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MANILA, Philippines - NiHAO Mineral Resources International Inc. will supply Glencore International AG with nickel for a year.
NiHAO told the local bourse on Wednesday that it signed a one-year marketing agency agreement with Glencore for nickel produced by the Philippine listed firm.
"Both parties agreed that the sale of nickel under the agreement shall be under the brand name GNA Resources International Ltd., the Hong Kong joint venture company involving the parties," NiHAO said.
Under the agreement, Glencore has the authority to market and sell nickel, both as a principal for its own account and as agent for third parties other than NiHAO.
Glencore also has the authority to conclude sales contracts on behalf of NiHAO.
"For and in consideration of services of Glencore, NiHAO shall pay a commission at the rate of $0.25 per wet metric ton of sales value of any nickel sold on an agency basis and $0.25 per wet metric ton, in case sold on a principal basis," the Philippine company said.
NiHao, together with AGP Industrial Corp. and Glencore, earlier incorporated GNA Resources International Ltd., a joint venture company in Hong Kong that will focus on the development and operation of mines in the Philippines for direct shipment of nickel ore to the world market.
Under the agreement, GNA shall use AGP and NiHAO’s expertise in mining, contracting and development of mines in the Philippines as well as their knowledge of relevant laws, regulations and local issues.
One of the world’s biggest commodities firms, Glencore will act as the exclusive marketing agent for the joint venture corporation.
Earlier, NiHAO said the joint venture will have an initial capitalization of $2 million—with Glencore contributing $1 million, while NiHao and AGP each contributing $500,000.