PERTH (miningweekly.com) – India-focused NSL Consolidated has inked an offtake agreement for the first 200 000 t of future Phase 2 wet beneficiation plant fines product from its iron-ore projects in India.
NSL told shareholders on Monday that the agreement had the capacity to absorb all the expected output from the wet plant, but being nonexclusive, allowed NSL to diversify its customer base going forward.
NSL noted that an offtake agreement directly with an end-user avoided the need for traders and uncertain credit worthiness inherent with the medium, and reduced the sales transaction risks.
It was expected that the offtake agreement, as the last piece of the operations puzzle, would also assist NSL in finalising non-equity funding to build its wet beneficiation plant.
NSL in July last year restarted its dry beneficiation plant in India.
The first phase of the operation would see NSL transport about 200 000 t of low-grade existing stockpiles at its AP23 tenement to the Kurnool stockyard. The material will be processed through the existing NSL plant, which had been under care and maintenance.