The sales price for the purchase order from Infinity Ores is $67 per tonne for 60/61% iron filter cake (wet plant product) with payment in advance based on 1,000 tonne lots.
NSL has already received Infinity Ore’s first advance payment for the wet plant iron ore production, with regular payments and iron ore dispatches now expected.
Infinity Ore is supplying the feed to NSL’s plant for use in the existing and expected future purchase orders.
In April, NSL received a 20,000 tonne 63% iron purchase order from Infinity Ore.
A rise in the strength of the domestic iron ore market has allowed NSL to negotiate the price of the new order to $67/tonne compared to $65/tonne for the April order.
The new order at a higher sales price will take production priority, with circa 2,000 tonnes of 61% iron already stockpiled.
Meanwhile, NSL is ramping up its plant in India to 200,000 tonnes per annum capacity of final concentrate to meet the increasing demand for its product.