Construction and staged commissioning of the Phase 1 Kurnool iron ore dry separation plant continues as the company finalises optimisation of the process, with final commissioning expected to occur before the end of June.
Highlighting the rapid pace at which NSL continues to advance towards first production at Kurnool, mid-last month the company achieved the milestone first ex gate sales of iron ore into the Indian domestic market.
Towards the end of the month NSL announced it had begun mining at the nearby Mangal iron ore mine.
The company 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 last month.
A 58% iron ore product sells domestically for about US$90 per tonne, meaning that at 200,000 tonnes per annum production, NSL is looking at first phase revenue of $18 million.
In Phase 2 of the project, NSL aims to ramp up production to 400,000 tonnes per annum at higher grades of between 58% and 62% iron. First sales are anticipated in the first half of 2013.
NSL is targeting production of 1.5 million tonnes per annum by the end of 2014, which is achievable through strategic acquisitions and supply agreements.
NSL is the only foreign company to own and operate iron ore mines in India.
The Kurnool stockyard in southeast India is a 12 acre industrial site located adjacent to NSL's existing Kuja iron mine in Andhra Pradesh. The stockyard will source its iron from the nearby Mangal iron ore mine.
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