Australia-based iron ore developer NSL Consolidated (NSL) has announced that it has signed an off-take agreement with an Indian steel producer for iron ore produced at NSL's Kurnool dry separation iron ore plant located in the southeast Indian state of Andra Pradesh.
According to the agreement, the steel mill will purchase up to 5,000 mt of iron ore per month and use the material as feedstock for its steel manufacturing plant. The initial agreement is for three months, with possible extensions based on mutual agreement.
According to NSL's statement, the ramp up at the plant has been slower than anticipated due, in part, to the monsoon season which has seen consistent sporadic showers impacting plant operation and output. As a result, production volumes are much lower than internal forecasts, impacting revenue from operations.
With the end of the monsoon season, the NSL is cautiously optimistic about continuing ramp up in production and sales volumes over the next few months.