NSL Consolidated has received an additional commercial purchase order for the premium product produced by the Phase Two Wet Beneficiation Plant at the Kurnool Iron Project. The order issued by Infinity Ores is for the supply of 20,000 tonnes of 60/61% iron filter cake.
The negotiated sales price for the initial order is A$67 (equivalent) ex gate with payment in advance on 1000 tonne lots.
An increase in the strength of the local domestic iron ore market has allowed NSL to negotiate the additional purchase with Infinity. NSL says that an opportunity now also exists to renegotiate the terms and conditions of the existing 20,000 tonne 63% iron purchase order, which was A$65 ex gate.
NSL managing director Cedric Goode said, “Further to the milestone of first sales being achieved last week, our customer, Infinity Ores, has placed an additional order for 60/61% iron at a higher sales price than the existing 63% iron order.
“This reflects the working relationship we have 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.”
Days before the additional purchase order, NSL announced that sales of wet plant iron ore production from the Phase Two plant had commenced with the company also confirming that it had received the first advance payment from Infinity.
Infinity is providing high-grade feed for blending with the existing plant feed to routinely produce product for its existing and expected future orders.
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 of time 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 possible.”