QN Group Signs Shipbuilding Contract with Chinese Jinling Shipyard

Asia Pacific Shipping Enterprises Pte. Ltd. (APSE), a wholly subsidiary of the Queensland Nickel Group (QN), has signed a ship construction contract for four 64.000 DWT ultramax bulk carriers.

The contract has been signed with the Foreign Economic and Technical Cooperation Company of China, Chanjiang National Shipping Group and the China Changjiang National Shipping Group Corporation Jinling Shipyard.

“The four vessels, for the use of QN, will be built at the China Changjiang National Shipping Group Corporation Jinling Shipyard, and we anticipate receiving delivery between February and June 2014,” said QN Managing Director Phil Collins.

“This investment to operate our own shipping service will provide our business with long term cost control of our ore freight activities and allow us to utilise the vessels to export other bulk commodities from our diversified group of companies in the years ahead.”

Subject to an agreement between APSE and QN, the vessels will primarily be used for the transportation of nickel ore from New Caledonia, Indonesia, and the Philippines to Townsville for processing and refining at the Palmer Nickel and Cobalt Refinery. The vessels may also be used to carry coal, iron ore, or other bulk materials.

The two hundred meter long vessels will be operated by Singapore-based APSE.

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QN, November 6, 2012; Image: Jinling Shipyard