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The one-year agreement “has the capability of absorbing all the expected output” from the NSL’s dry beneficiation plant in the Indian state of Karnataka, it said in a filing to the Australian Securities Exchange on Monday March 30.
The lump product will have a typical specification of up to 58% Fe content, NSL said, and the prices will be based on market levels.
The agreement follows the first offtake deal signed by the Indian miner in February, when it agreed to supply its first 200,000 tonnes of iron ore fines, with a typical specification of 58-62% Fe, to the same Indian steelmaker.
The BMM steel complex is located within the Hospet region of Karnataka, some 240km from NSL’s operations.
Australia-listed NSL Consolidated has entered into a second offtake agreement with Indian steel mill BMM Ispat for up to 200,000 tonnes of iron ore lumps.