NSL Consolidated has received its first commercial purchase order for the premium iron product produced at its new Phase Two wet beneficiation plant at Kurnool in India’s Andhra Pradesh state. Processing of run of mine (ROM) material into the plant has commenced and iron ore deliveries are expected to commence by the end of February.
The initial purchase order issued by BMM Ispat is for the supply of 4000 tonnes of 63% iron filter cake (wet plant product). The negotiated sales price for the initial order is approximately A$65 per tonne with payment terms within 10 days on 1000 tonne lots. A 4000 tonne order represents the normal steel mill purchasing parcel size in India.
Other discussions with multiple customers are ongoing, with NSL confident of being able to further improve the equivalent sales price for future orders of varying grades with BMM, other Indian steel mills and the prospect of exporting into the improving seaborne iron ore market.
NSL’s managing director Cedric Goode said, “The NSL team is very pleased to have now received an initial order from BMM and has immediately commenced production to sell into the order, with deliveries expected this month.
“Importantly, this again reaffirms the positive relationship we have with our end user BMM and our bona-fides in the region.”
Further to the positive optimisation process resulting in beneficiating low grade iron ore waste as low as 14% iron feed regularly to in excess of 62% and up to 65.3% iron and imminent sales, NSL continues the process of employing shift supervisors, plant operators, mobilising stockyard fleet with goal of ramping up of throughput and production to a 24-hour operation over the coming months.
NSL, which is the only Australian or foreign company to own and operate in India’s massive iron ore market, has established its Phase Two wet beneficiation plant that will produce premium price iron ore product nominally grading between 58-62% iron at around 200,000 tonnes per annum. The Phase Two plant at NSL’s existing Kurnool stockyard will be fed material from NSL’s nearby iron ore mines.