Perth company signs MoU to develop low-grade iron ore deposits in Andhra Pradesh

HYDERABAD – Perth-based NSL Consolidated (ASX: NSL, NSLO) has taken an important step forward in its Indian iron ore strategy, signing an MoU with the Government of Andhra Pradesh for collaboration in the mining, beneficiation and value addition of low grade iron ores that are abundant in the State.

The MoU was executed between NSL and the Andhra Pradesh Mineral Development Corporation (APMDC), the State-owned enterprise charged with maximising utilisation of mineral resources within the State.

NSL Consolidated will work with APMDC in reconnaissance and exploration for minerals. The company has also agreed to provide state of the art testing, process flow development and technology for establishment of beneficiation and pellet plants for low grade iron ore.

Cedric Goode, Managing Director of NSL, says the Cuddapah Basin in Andhra Pradesh is a sedimentary formation that stretches more than 200 kilometres and is characterised by high silica content very low grade iron ores.

“The material is not classified by Indian Bureau of Mines  definitions as iron ore, because, with grades averaging between 25-35% Fe content, none of the material is economically viable for use in the steel industry,” he said.

“NSL has spent six years progressing its iron ore strategy in India and developing a technology tailored specifically at the beneficiation of these low grade iron ores. This investment has been recognised by the State of Andhra Pradesh as a key enabler for unlocking the vast low grade mineral wealth.”

NSL has developed a process flow and technology that is capable of beneficiating iron ores from as low as 27% Fe content to a saleable concentrate of between 60-62% Fe, which is ideal for the Indian domestic steel industry.

In addition to iron ore, the collaboration agreement allows for the expansion into other key minerals critical for the State and India’s growth plans. www.nslconsolidated.com (ATI).