NSL Consolidated Ltd to establish steel making plant in India
Date
5/17/2016 5:05:08 AM
(MENAFN- ProactiveInvestors - Australia)
NSL Consolidated Ltd (ASX:NSL) is not only weathering the iron ore downturn well, it continues to thrive signing an agreement with Chinese heavy equipment crane building company Wei Hua Group Co Ltd, to establish a steel making plant in Andhra Pradesh, India.
While the agreement is non-binding, Wei Hua is known to be bullish on India becoming the world's second largest producer of crude steel in the next 10 years and committing resources to participate in the growth.
Significantly, NSL is the only foreign company to own and operate iron ore mines in India.
Wei Hua Group Co Ltd, with revenues in excess of US$1 billion in 2015, has already acquired significant parts for the proposed steel making plant.
India is forecast to increase capacity to about 300 million tonnes by 2025, up from 81 million tonnes in 2013-14.
The growth potential for India is significant, due to the relatively low per capita steel consumption and the expected rise in consumption fuelled by the infrastructure, automobile and railways sectors.
NSL will leverage an existing agreement with the Andhra Pradesh government to grow the mining, beneficiation and value added activities to more than 8 million tonnes per annum of iron ore production.
The Wei Hua Group brings strong ties with the Asia Infrastructure Investment Bank, a newly established international financial institution that aims to support the building of infrastructure in the Asia-Pacific region.
NSL had a cash balance of $1.2 million on 31 March 2016. <
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