Wet plant to be commissioned in Q2: NSL Consolidated
NSL Consolidated (ASX:NSL) expects a crucial beneficiation plant to be commissioned in the second quarter next year after it secured the cash needed to purchase the plant in China.
The India-focused iron ore miner has a $5 million loan facility with New York-based MG Partners II Limited, and as part of that facility NSL has elected to draw down $1.3 million.
It still has a further $600,000 left as part of the facility after the latest drawdown.
The $1.3 million will be held in escrow with the Chinese manufacturers of the plant, pending a final inspection ahead of shipping to India.
The phase two beneficiation plant is being designed as a pre-fabricated ‘wet’ plant, which will allow NSL to bring low grade iron-ore up to grades between 58% to 62%.
The construction of the wet plant is being underpinned by offtake agreements penned with industrial giants JSW Steel and BMM Ispat.
NSL has been hard at work tying up various offtake deals for its phase one, phase two, and specialised ‘lump’ product in recent times, but several of these deals are non-exclusive meaning NSL has scope to pursue a better deal should one come up.
About NSL Consolidated (ASX:NSL)
NSL Consolidated is the only Australian miner to own and operate in the Indian iron ore market.
It is set up in the Andhra Pradesh region where it uses beneficiation processes to bring low-grade ore up to a saleable grade.
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%.
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.