THE phase two wet beneficiation plant at NSL Consolidated’s Kurnool Iron Ore Project in Andhra Pradesh is expected to be in positive cash flow by the end of the year. The plant will allow NSL to produce a high grade premium price iron ore product grading between 58-62% iron at around 200,000 tonnes annually.

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Chinese components arrive on site at Kurnool for NSL Consolidated’s phase two iron ore wet beneficiation plant.

The company appointed beneficiation plant supplier Huate, of China, to provide the plant and assist with construction, commissioning and operation. Plant components arrived on site in July with erection commencing immediately and commissioning starting by mid-September.

NSL appointed RVPR Construction, an experienced plant erection contractor, to provide the resourcing required for erection to move quickly to completion.

Mobilisation of large-scale cranes occurred and under the guidance of NSL and Huate engineers, the key heavy machinery from China was traversed and placed into position. This included the ball mills and spiral classifier equipment, which presented a challenge to the site team but was successfully and safely completed on time.

Electrical and piping installation occurred in parallel to the equipment erection with dedicated teams engaged to complete these work packages. In an update in early September, NSL said the 33kV transmission line and switch yard works were continuing as planned with project completion expected shortly. NSL said the control rooms and substation buildings were also nearing completion.

The company has negotiated offtake agreements for phase two’s high grade iron ore product with Indian global conglomerate, JSW Steel, also that country’s leading private sector steel producer, and BMM Ispat, a leading pellet, power and steel producer.

NSL has also made significant progress on a binding joint venture agreement for establishment of a greenfield steel making plant in Andhra Pradesh. In late June the company signed an agreement with Wei Hua Group Co Ltd, a leading Chinese heavy equipment crane building company, for establishment of a plant.

The partners decided that initial priority will be the completion of a prefeasibility study for the front end of the steel plant, being a pellet plant. It is expected that this will be completed by the end of the year with the steel plant prefeasibility to follow shortly after.

A large, high level Chinese delegation, including China Communications Construction Company, Dalian Huarui Heavy Industry Group and China Metallurgical Group Corporation, will visit India during October to advance the proposal.

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