Jasco Holdings Signs Main Contract to Supply 8 Million Tons of Nickel to China Poly Energy

From the left, Sangmin Han, CEO of Jasco Holdings, and Baoan Wang, General Director of Baoli Energy. Jasco Holdings

Jasco Holdings announced on July 7 that it has signed a long-term main contract with China Poly Energy for the supply of at least 8 million tons of nickel ore from the Philippines.

The signing ceremony, held at the Park Hyatt in Samseong-dong, Seoul on the same day, was attended by Baoan Wang, General Director of Baoli Energy; Yanqing Wang, Chief Financial Officer (CFO) of Baoli Energy; Zhao Yi, Deputy General Manager of Baoli Energy; as well as executives from both Baoli Energy and Jasco Holdings.

This main contract was concluded following on-site due diligence and subsequent discussions, based on the memorandum of understanding (MOU) for 2.4 million tons signed in March. Under the agreement, Jasco Holdings will supply at least 2 million to 3 million tons of nickel ore annually until 2028. This represents the initial supply volume, and there is a high possibility of extending the contract period and expanding additional supply.

Since the beginning of this year, Jasco Holdings has been in ongoing discussions with multiple global companies regarding nickel ore supply, signing MOUs and conducting due diligence on Philippine nickel mines. The company explained that this contract is the first achievement following long-term cooperation talks and serves as a stepping stone for establishing itself as a global key resource supplier.

A company representative stated, "This contract is a strategic decision aimed at building trust in the market by securing a long-term supply source rather than focusing on short-term profits." The representative added, "Notably, the contract includes clauses for automatic extension if supply proceeds without disruption for three years, and for minimum fulfillment volume, which are expected to lead to an extension of the contract period and expansion of additional supply."

The representative further commented, "By securing Baoli Group, a major Chinese state-owned client, we are building a track record, which will serve as an opportunity to preemptively secure various business opportunities, including additional supply expansion and the discovery of new clients in the future."

Recently, Jasco Holdings completed its application for the Mine Development Feasibility Report (DMPF) for the Dinagat nickel mine in the Philippines and has finished all preparations for export. The DMPF is an official procedure in which the Philippine government reviews the technical feasibility and environmental suitability of mine development, and approval is granted once the prescribed procedures and requirements are met.

Additionally, another supply contract is forthcoming. Last month, Jasco Holdings signed an MOU with Pacific Infinity Resource Limited (PIRL) in Hong Kong for the supply of 2.4 million tons of nickel and completed on-site due diligence in the Philippines. The on-site due diligence went beyond a simple inspection of mining sites and included a comprehensive review of shipping and logistics routes. As PIRL has a high level of understanding regarding Philippine nickel mines, negotiations for the main contract are progressing rapidly.

A company representative said, "Since last year, China has been increasing imports of major raw materials such as grain, metals, and energy," and added, "We plan to expand the global nickel supply chain based on exclusive rights to Philippine nickel mines and stable port infrastructure."