NSL Consolidated has enhanced its Chinese relations by executing a strategic cooperation agreement for provision of wet beneficiation iron ore plant engineering, procurement and construction (EPC) services. The MoU outlines the way forward for strategic cooperation with experienced EPC provider Shandong Xinhai Mining Technology and Equipment.
NSL and Xinhai will cooperate to secure financing for future beneficiation plants up to an annual concentrate production target of 2.5 million tonnes. Xinhai has a strong history with Chinese import/export banks to provide funding for EPC projects.
Xinhai will commence comprehensive testing from samples already in China to finalise the process flow and equipment requirements to produce a routine operating concentrate grade ranging between 63-65% iron, targeting 65%. Engineers from Xinhai will be on site in India to review NSL’s existing iron ore operations.
The results of the site visit and testing are expected to flow into NSL’s upcoming expansion projects, whereby Xinhai will have the opportunity, based on acceptable commercial terms, to:
1. Build an additional 200,000 tonnes of concentrate capacity with commissioning targeted to commence in July 2017.
2. Build a 1 million tonne concentrate plant with commissioning targeted to commence in December 2018.
3. Build a 1 million tonne concentrate plant with commissioning targeted to commence in December 2019.NSL
Xinhai will also optimise NSL’s existing beneficiation plant to produce a routine operating concentrate grade ranging between 63-65% iron.
Founded in 1997, Xinhai is a high and new technology enterprise providing turnkey solutions for processing plants, including design and research, machine manufacturing, equipment procurement, management services, mine operation, mine materials procurement and management, as well as industry resources integration.
With 500 mining EPC projects, 70 kinds of ore mining technologies and experience, and 20 patents, Xinhai has overseas offices in Sudan, Zimbabwe, Tanzania, Peru and Indonesia, and has exported to more than 20 countries.
Xinhai has previously exported to India and is now looking to further its exposure in the growing Indian economy through the provision of EPC services, seeing an Australian company operating in India as an ideal opportunity.
The MoU, along with the existing Huate relationship, enhances NSL’s relationships and expertise in China. More Chinese companies are looking to Indian business opportunities for their future growth.