SALES of wet plant iron ore produced from NSL Consolidated’s new Phase Two Wet Beneficiation Plant at Kurnool in Andhra Pradesh state have commenced. The company’s first two sales orders for the product have come from Infinity Ores with the first advance payment received.
Infinity is providing high-grade feed for blending with existing plant feed to routinely produce material for existing and expected future orders.
In April, NSL received a commercial purchase order from Infinity for 20,000 tonnes of the premium product from the Phase Two plant. The order was for the supply of 63% iron filter cake and the negotiated sales price was the equivalent of A$65 ex gate.
In June, NSL received a second order from Infinity for supply of 20,000 tonnes of 60/61% iron filter cake and the negotiated sales price was the equivalent of A$67 with payment in advance on 1000 tonne lots.
An increase in the strength of the local domestic iron ore market allowed NSL to negotiate the additional purchase with Infinity. At the time, the company said there was also an opportunity to renegotiate the terms and conditions of the existing 20,000 tonne 63% order.
NSL managing director Cedric Goode said the orders reflected the strong working relationship with Infinity and their confidence in the performance of the company and the wet beneficiation plant.
“In working with Infinity, this new order at a higher sales price will take production priority, with approximately 2000 tonnes of 61% iron already stockpiled.”
Regarding the Phase Two plant sales Cedric Goode said, “The milestone of first sales from the wet plant is something everyone in the company is very proud of. We have worked extremely hard over a long period to be the only foreign company to own and operate iron ore mines in India.
“With continued hard work and dedication from all stakeholders, the company has a promising and unbelievably exciting future. We are ramping up to our 200,000 tonne per annum plant capacity of final concentrate as efficiently and effectively as possible.”
The plant is now operating 24 hours and producing filter cake for sale from Infinity feed material. NSL is expecting regular iron ore dispatches and regular payments.