NSL gets environmental nod
THE BOURSE WHISPERER: India-focused iron ore company NSL Consolidated has presented draft Terms of Reference (TOR) to the Ministry of Environment and Forests in New Delhi for the Kurnool beneficiation project.
The TOR presentation and subsequent minor additions, is a milestone in the Environmental Clearance (EC) process for the beneficiation project as the TOR defines the environmental requirements of the project.
“The presentation to the Ministry of Environment and Forests New Delhi Expert Appraisal Committee is a significant step forward,” NSL Consolidated managing director Cedric Goode said in the company’s announcement to the Australian Securities Exchange.
“We now have a clear understanding of environmental boundaries in proceeding with the projects.”
According to the company submission of the TOR now makes all remaining EC steps procedural in nature, allowing NSL to proceed with developing the project under clear environmental boundaries.
In addition, NSL has received detailed engineering drawings and plant designs from the Shanghai Minggong Heavy Equipment Company, and is in the final stages of drafting purchase agreements and closing commercial discussions for long lead items from China, with installation work due by the end of the year.
“The Kurnool plant has the potential to lift our ROM iron ore grades to between 58-61 per cent iron from as low as 25 per cent to 27 per cent iron, and with good yield and recovery rates,” Goode said.
“Our trial mining has provided NSL with accurate cost estimates for all aspects of mining, crushing, screening and transport to port from Kurnool.
“It has very robust economics with cash costs of around US$57.22 per tonne compared to current spot prices for the beneficiated high grade material of between US$136 and US$163 per tonne.
“The plant has the capacity for annual throughput at Kurnool of 196,000 tonnes of concentrate, which would deliver a steady net cash flow of US$800,000 per month.”
NSL said its timetable for the US$2.3 million iron ore beneficiation plant project remains on schedule to commence production in the opening half of next year.
The beneficiation plant will be located at Kurnool in the south eastern Indian state of Andhra Pradesh close to NSL’s two iron ore mines at Kuja and Mangal, which are both subjects of advanced mine design and production schedule work.
“This project is on track,” Goode continued.
“We have moved into a nine month pipeline to complete final plant design, construction and commissioning, the latter’s first stage commencing by year’s end with a cash-back, based on modelled plant throughput, within 2-3 months post-commissioning.
“Final commissioning will deliver maiden revenue for NSL but also open additional revenue generating opportunities.”
The company said it plans to mount a series of cost reduction initiatives once final commissioning is underway, with particular focus on transport, export duties and beneficiation operating costs.