NSL receives Government of India support for AP14 Mining Lease
NSL Consolidated Limited (ASX:NSL) has received support from the Government of India for the AP14 mining lease in Karimnagar (200 km North East of Hyderabad in the state of Andhra Pradesh). The Prime Minister’s Office and Cabinet Secretariat has accepted AP14 into the Project Management Group (PMG), a group that will help to ensure that the project runs smoothly and without hindrance from unnecessary delays such as from excessive bureaucracy. This will allow the AP14 project to start production according to NSL’s budget and strategy.
NSL also met with Indian state government officials from Telangana, the state in which AP14 is located. The Chief Minister and his team were keenly aware of the opportunities AP14 brought to the local community, through employment generation and use of low grade resources in the state. The Chief Minister stated that any essential support would be forthcoming in such a mutually beneficial project.
Project Management Group
The PMG was set up in June 2013 with the mandate to expedite 450 major projects worth over Rs 21 trillion, or A$371 billion. To date, the PMG has cleared projects worth approximately Rs 5 trillion, or A$88 billion, some of which had been stalled for years. The PMG achieves its objectives by creating processes to which individual government ministries adhere, helping to clear any blockages.
The PMG only takes on projects that are considered critical national interests or in excess of A$180 million in value. The PMG’s support of NSL is therefore critical, especially in a state where the mining industry is undeveloped.
NSL’s managing director Cedric Goode stated, ‘We are very excited to be accepted into and sponsored by the Project Monitoring Group, as this is an important development and further lays the groundwork as part of our future expansion plans in the years ahead, as we continue to progress our development vision and strategy in India.’
The AP14 project is a magnetite mining project in Karimnagar in India. The project area covers 290 acres characterised by a hill formation.
Magnetite is a type of naturally occurring iron oxide with magnetic properties.
NSL aims to yield between 134 million to 377 million tonnes of magnetite from AP14, with a range between 20% to 50% Fe (iron). NSL additionally aims to mine Direct Ship Ore (DSO), with a target of 5 – 10 million tonnes at grades between 55% to 65% magnetite.
The area surrounding AP14 has good infrastructure to facilitate the project, including coal mines for power generation, ports for exporting, a railway and water supplies.
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.