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NSL shares soar on Indian deal
1 minute read
Shares in NSL Consolidated (ASX:NSL) have soared on news that it had secured a 4000 tonne purchase order covering its “low iron, high silica lump” product in India – a deal which could be the start of a monthly supply.
It told the market today that it had swung the deal with major Indian industrial player Sathavahana Ispat, a steel producer, for the product which is a by-product of NSL’s iron ore operations in India.
The product is a highly specialised feed lump blend of iron, silica, and alumina which is used in steel blast furnaces to maintain the performance of the furnace and helps affect the final quality of cast iron.
It said for payment it penned a letter of credit with the Indian company, but the terms of the letter were kept under wraps.
However, NSL told the market that the Indian company would require 4000 tonnes of the specialised product per month.
News of the sale sent shares in NSL north during intraday trading, up 18% to 1.3c, its highest price since the end of September.
About NSL Consolidated (ASX:NSL)
NSL Consolidated is set up as a low-cost iron ore miner in the Andhra Pradesh region of India, where it uses a key beneficiation process to bring low-grade iron ore up to snuff to industrial users.
It has a two phase plant strategy in place, taking ore from mining licenses in the region.
A phase one plant is slated to have an ultimate throughout capacity of 680,000 tonnes per year, feeding 20-25% grade ore and putting it through the beneficiation process to convert it to 50-55% grade ore.
Output is slated at about 200,000tpa.
Meanwhile, phase two is being planned as a wet beneficiation plant capable of producing 200,000tpa with a grade of 58-62%. The phase two plant has been underpinned by offtake agreements with JSW Steel and BMM Ispat.