NSL Consolidated Ltd. said April 4 that it signed a memorandum of understanding with Chinese engineering, procurement and construction firm Shandong Xinhai Mining Technology and Equipment Inc., or Xinhai, for the provision of wet beneficiation plant services.
Under the agreement, NSL will collaborate with Xinhai to secure financing for future beneficiation plants up to a concentrate production target of 2.5 million tonnes annually, while further developing NSL's relationships and expertise in China.
NSL struck a similar deal with China-based Huate Magnetism in 2016.
Xinhai will begin comprehensive sample testing in the country to finalize process flow and equipment requirements to produce an operating concentrate grade ranging between 63% iron and 65% iron, targeting 65% iron.
With Xinhai receiving the engineering, procurement and construction contract, it expects to establish an additional 200,000 tonnes of concentrate capacity, with commissioning targeted to commence in July; set up a 1-million-tonne concentrate plant, with commissioning targeted to commence in December 2018; and another 1-million-tonne concentrate plant the following year.