hi dan, from memory i don't believe there has been any official...

hi dan,


from memory i don't believe there has been any official word on the production capacity of the pellet plant... but, a few have taken guesses based on the land size provided at the industrial park. i think the concensus was probably under a mil, maybe closer to half a mil of output.

so far as the profit margins... the below is from the 22.12.16 announcement:

"Further to the successful visit in November, and in line with the pre-feasibility requirements, a second round of visits were conducted during the week of 12th December. The primary focus of second visit incorporated the following:  Review of the Indian pellet market utilising available and determined market norms;  Presentation of EPC proposals by Chinese companies; and  Technical reviews and discussions on proposal merits and design. Based on current Indian mining and pellet industry norms for integrated plants, this indicates a possible A$44-$52 per pellet tonne operating profit for a NSL owned pellet plant."

I have confirmed this includes the profit margin NSL would already be making on the beneficiation of iron ore. this was last quoted at around $30 (on some info provided to insto's, i will find this link and post below for you). However, this was also back before something like a 20% price rise in the iron ore market in india. Also, I believe the end price of pellets has gone up in price....however, without digging and digging, i can't find the source or quantify it for you.... so i would guess around $50-$70 margin based on the iron ore price increase alone.


with regards to the 2 x 1mtpa being ordered together i probably have my reservations now... i never used to, i felt like they could... but, i feel like unless NSL has their AUS training/schooling of indian employees well and truly up and running ASAP then we probably couldn't.... i think they've have had enough battles getting the staffing up to 250 now with training, that by the time they are up to 2.5mtpa they will be up around 2000 employees.... basically, that's a hell of a lot of farmers to be trained up in mining and beneficiation production...


and the link from @Unrealeous i was referring to.... i remembered it being around agm time..

https://hotcopper.com.au/posts/29542739/single