Next Investors logo grey

MOU with Xinhai could see NSL’s annual iron ore production capacity increase

Published 04-APR-2017 13:51 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

In a possible company making development for NSL Consolidated (ASX: NSL), management has negotiated a strategic cooperation agreement for the provision of wet beneficiation plant Engineering, Procurement and Construction (EPC) services.

A Memorandum of Understanding (MOU) has been agreed upon with high profile Chinese global EPC provider, Shandong Xinhai Mining Technology and Equipment Inc (Xinhai), outlining the way forward for a strategic cooperation strategy, potentially increasing current concentrate capacity by 200,000 tonnes with the prospect of building two separate 1 million tonne concentrate plants to be commissioned in 2018 and 2019.

By way of background, Shandong Xinhai Mining Technology & Equipment Inc, is a Beijing listed company which provides “Turnkey Solutions” for mineral processing plants; including design and research, machine manufacturing, equipment procurement, management services, mine operation, mine materials procurement & management, as well as industry resources integration.

Xinhai has 500 mining EPC projects, 70 methods of ore mining technologies and experience, as well as 20 patents.

The company has previously exported equipment to India, and is now looking to further its exposure in the growing Indian economy through the provision of EPC services, viewing an Australian company operating in India such as NSL as an ideal opportunity.

It should be noted though that this MoU is an early stage agreement and investors should seek professional financial advice for further information if considering this stock for their portfolio.

Xinhai positioned to provide financial backing for new plants

The fact that Xinhai has a strong history with Chinese import/export banks in terms of providing funding for EPC projects throughout its global footprint could be important for a smaller company such as NSL when it comes to financing the development of new plants. On this note management is working with Xinhai to secure financing for future beneficiation plants up to a concentrate production target of 2.5 million tonnes per annum.

Xinhai will immediately 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% Fe, targeting 65% Fe.

Xinhai engineers will be on site in India in the coming weeks to review existing operations. The results of the Xinhai site visit and sample testing will then form the framework for the parties to make a decision regarding the aforementioned expansion scenario based on mutually acceptable commercial terms.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.