NSL Consolidated has commenced construction at Kurnool beneficiation project in India to initiate first stage commissioning by year end. This would deliver first revenues to NSL in the first half of 2012.

The Kurnool plant has the potential to lift ROM iron ore grades to between 58% to 61% iron from as low as 25% to 27% iron and with good yield and recovery rates.

Trial mining has provided accurate cost estimates for all aspects of mining, crushing, screening and transport to port from Kurnool.

NSL could gain a return on capital within just three months of reaching full commissioning. The plant site works program on the 12 acre stockyard site at Kurnool in the south eastern Indian state of Andhra Pradesh is underway with the site surveys completed and earthworks contractor selection finalized and in process of mobilizing.

The stockyard is located adjacent to NSL existing Kuja mine and 5 kilometres from NSL Mangal mine both of which are currently the subject of mine design and production schedule work as the ore sources for plant start-up. The order process with suppliers for equipment continues as part of the beneficiation plant project.

NSL is so far the only foreign company granted the right to own and operate iron ore mines in India which is the world’s third largest iron ore exporter in parallel with having a strong domestic steel market.

The Kurnool plant will have the capacity for annual throughput of 196,000 tonnes of concentrate which would deliver a steady net cash flow of USD 800,000 per month once commissioning is completed and throughput stabilized.

Final commissioning will deliver maiden revenue for NSL but also opens up additional revenue generating opportunities from beneficiation of third party ores from a number of iron ore deposits within the Cuddapah Basin area of Andhra Pradesh.

NSL is currently in discussions with project owners to gain access to these additional iron ore sources.

(Sourced from www.proactiveinvestors.com.au)