The Directors of NSL Consolidated Ltd (NSL) are pleased to report the Company has now sold its first iron ore ex gate into the Indian domestic market. The first iron ore sales represent a historic milestone for Perth-based NSL in its transition to “producer” status, the only foreign Company to own and operate iron ore mines in India.
Construction and commissioning of the Phase 1 Kurnool iron ore dry separation plant continues on time and budget as the Company finalises optimisation of the process capable of producing up to 58% Fe grade ore. The Company expects a gradual ramp up in production and sales tonnages from now, towards the targeted Phase 1 production capacity of 200,000 tonnes per annum in the third quarter. Final commissioning on the dry separation circuit is expected to occur prior to June 30, 2012.
The Phase 2 wet beneficiation plant which is capable of producing final product grades of between 58-62% Fe, will be brought into operation later in 2012 with completion and anticipated sales in the first half 2013. This is targeted to increase production capacity by an additional 200,000 tonnes per annum to 400,000 tonnes per annum.
Domestic demand and pricing for iron ore remain particularly strong and NSL has received numerous approaches from industry players seeking to secure off-take from the Kurnool project.