Australia's junior explorers - The ASIA Miner

First sales into domestic market
NSL Consolidated has sold its first iron ore ex-gate into the Indian domestic
market with the Australian-based outfit becoming the only foreign
company to own and operate iron ore mines in India. Construction
and commissioning of the phase 1 Kurnool iron ore dry separation plant
continues on time and budget as NSL finalizes optimization of the process
capable of producing up to 58% iron grade ore.
The first ex-gate sale was achieved in May and NSL expects a gradual
ramp up in production and sales tonnages towards the targeted
phase 1 annual production capacity of 200,000 tonnes during the
third quarter. Final commissioning on the dry separation cir cuit was
expected to occur before June 30.
The phase 2 wet beneficiation plant, which is capable of producing
final product grades of between 58-62% ir on, will be brought into
operation later in 2012 with completion and anticipated sales in the
first half of 2013. This is targeted to incr ease annual production capacity
by an additional 200,000 tonnes to 400,000 tonnes.
The Kurnool stockyard is a 4.85 hectar e industrial site within the
south-eastern Indian state of Andhra Pradesh. As well as the ir on
source at the nearby Mangal mine, the plant is also adjacent to NSL’s
existing Kuja iron mine.
NSL’s managing director Cedric Goode says, “Domestic demand
and pricing for iron ore remain particularly strong and NSL has recei-
Operations at one of NSL’s iron ore projects in southeast India.
ved numerous approaches from industry players seeking to secur e
off-take from the Kurnool project.
“This is a significant milestone for NSL, as we have had to overcome
many challenges to become the first for eign iron ore producer in
India,” he says. “Our journey is only just commencing, as we progress
through completing phases 1 and 2, to utilizing our experience and
actual performance to lift NSL to its desir ed 1.5 million tonne per
annum target by the end of 2014.
“This target will be possible through bolt on wet and dry separation
plants to increase output, together with sourcing additional ore feed
through strategic acquisitions and supply agreements.
“With the increase in funds being allocated to infrastructure projects,
Indian domestic steel production is expected to increase from 77 million
tonnes to 200 million tonnes by 2020. The company looks for -
ward to making its contribution as part of this growth.”
NSL’s plan for phases 3 and 4 incorporates 1.5 million tonnes annual
throughput by the end of 2014 aided by acquisition of a thir d
project, Karimnagar, which has an exploration target of 62 million to
125 million tonnes of magnetite at grades of 20-50% iron. This project
represents a ‘second generation’ for NSL in India with significantly larger
potential than the Mangal and Kuja mines. The company is also
seeking other iron opportunities in India.
India
July/August 2012 | ASIA Miner | 43