DECEMBER QUARTER HIGHLIGHTS
IRON ORE
- Phase Two wet beneficiation plant wet commissioning continued with electrical commissioning of entire plant completed, rendering plant electrically fully operational.
- Material fed into plant for first time with successful testing of materials handling systems, with plant producing first product through full plant process.
- Very low grade waste material feed utilised in commissioning producing exciting results, with ROM feed grade ranges between 25-35% Fe will produce high grade premium price product, grading between 58-62% Fe.
- Transition from commissioning to optimisation and production ramp commenced at the time the Phase two wet plant reached safety milestone of 250,000 hours LTI free.
- Offtake partner BMM Ispat Ltd (BMM) delegation visit site to review plant progress, and re-confirm BMM are able to consume all 200,000 tonnes per annum (tpa) of material produced by the plant and in addition will also consume proposed expansion production of additional 200,000 tpa.
- Successful Chinese delegation visit to India hosted by NSL and Government of Andhra Pradesh in support of NSL’s business strategy, with follow-up round of visits to India and NSL’s operations conducted by several Chinese design, engineering procurement and construction (EPC) contractors.
- Focus on the proposed steel and pellet plant locations, NSL’s operations and other critical Andhra Pradesh infrastructure opportunities. The Company has received multiple proposals from large scale EPC contractors, with technical reviews and discussions occurring during the visit.
- Current Indian industry norms indicate a possible A$44-$52 per pellet tonne operating profit for a NSL owned pellet plant.
- NSL secures access to the second largest mining lease in the region, 77 acres containing a significant quantity of iron ore amenable to NSL’s beneficiation process. Designated AP3, it is located only 10kms from to its wet beneficiation plant and stockyard.
- AP3, when combined with AP 26 and 27 acres of land area, represent an 800% increase in total mining lease area compared to existing leases, Kuja and Mangal.
- NSL to take full control of all aspects of the AP3 mining lease in exchange for a beneficiated Run of Mine royalty payment of circa $1/tonne.
- AP3 further supports and potentially enhances regional production plan.
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