NSL Consolidated has achieved another major milestone in its transition to producer, with the start of its ramp up to the targeted Phase 1 production capacity of 200,000 tonnes per annum from its Kurnool dry separation iron ore plant in India.
The company is targeting a staged ramp up to the full 1.5 million tonnes per annum by the end of 2014.
Importantly, NSL has received a number of expressions of interest from local steel mills in regards to offtake agreements for the Kurnool iron ore.
Kurnool represents an attractive iron ore supply solution for these steel mills due to its close proximity. NSL is currently negotiating potential agreements.
Mr Cedric Goode MD of NSL Consolidated commented on the milestone that “We have made significant progress to date at Kurnool within our communicated budget and timetable. Importantly we anticipate generating meaningful cash inflows during the quarter, with strong domestic prices and low ex gate costs, as we are now ramping up to full production. We are buoyed by the interest from local steel mills in securing offtake from our operations and are hopeful to execute one or more sales agreements in the near future.”
“Our journey is only just commencing, as we progress through completing Phases 1 and 2, to utilising our experience and actual performance to lift NSL to its desired 1.5 million tonne per annum target by the end of 2014. This target being possible through bolt on wet and dry separation plants to increase output, together with sourcing additional ore feed through strategic acquisitions and supply agreements.”
The ramp up process during the quarter includes expanding equipment and labour at the Mangal mine, starting up the Kuja mine and recruiting and training additional dry plant operators.
NSL is targeting an initial steady production rate of 200,000 beneficiated tonnes per annum from the first phase of operations at the Kurnool stockyard, with beneficiated grades of up to 58% achieved earlier this year.
Source - Proactive Investors
(www.steelguru.com)
