NSL Consolidated has received a commercial purchase order for 20,000 tonnes of the premium product from its recently recompleted iron ore wet beneficiation plant in India’s Andhra Pradesh state. The order issued by Infinity Ores is for the supply of 63% iron filter cake, which is a wet plant product.
The negotiated sales price for the initial order is A$65 ex-gate, with payment in advance based on 1000 tonne lots.
NSL’s managing director Cedric Goode said, “The NSL team is very pleased to have received an order from another customer, indicating a growing demand for the NSL product. Importantly, this has allowed NSL to diversify its customer base along with better commercial terms which include pre-payment for our product. Better commercial terms are on the back of continued strength in the local domestic price.”
The company is working through operational/plant changes to enable the routine production of the +63% iron product. The short-term operational changes include the blending of higher grade feed as/when supplied by Infinity with existing plant feed.
The plant changes will incorporate the addition of a thickening circuit to the process flow to assist with water recycling. These changes will not affect the delivery into the Infinity order.
NSL’s Phase Two wet beneficiation plant commenced two-shift operations at the beginning of April and is scheduled to move to three-shift operations by the end of the month. The plant is expected to produce premium price iron ore product grading between 58-62% iron at around 200,000 tonnes per annum.
NSL is the only Australian or foreign company to own and operate in India’s massive iron ore market. The feedstock for the Phase Two plant at Kurnool is provided by two of the company’s local mines nearby, Kuja and Mangal.