Northland and Peab to Form a Joint Venture for Managing the Transport of Iron Concentrate from Kaunisvaara to Narvik Port
Luxembourg - Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK -- “Northland” or “the Company”) is pleased to announce that the Company and Peab AB (“Peab”) have signed a letter of intent to form a joint venture company (“JV”) that will manage the entire logistical chain, transporting the iron ore concentrate from Northland’s mine in Kaunisvaara to the loading on ships in the port of Narvik.
“We are confident that Peab will be a strong and committed partner for handling the logistical solution, which is a very important component to bring the high grade iron concentrate to our customers”, said Karl-Axel Waplan, President and Chief Executive Officer of Northland Resources S.A. “Together we will form a joint venture company of which each partner holds 50%. The intention of the parties is to invite one or two more partners to the JV.”
The parties intend to establish the JV during the third quarter of 2011. The logistic chain, which will be fully operated by the JV is planned to be operational by the end of 2012 to coincide with the start-up of Kaunisvaara production. The JV will manage the entire logistical chain, covering the loading of concentrate onto trucks for transport to the Svappavaara terminal, where the goods will be transferred on to rail cars. The JV will also operate the trains from Svappavaara to the port of Narvik, including the storage of goods in Narvik and the loading of the ships.
“We are pleased that we can further develop our cooperation with Northland. Our experience from past mining projects will enable us to develop and refine their logistical solution”, says Peab’s CEO Jan Johansson in a statement.
The Kaunisvaara iron ore project is located in Northern Sweden, approximately 100 km north of the Arctic Circle, in the municipality of Pajala. After the completion, the annual capacity of the process plant will be 12 million tonnes of iron ore and 5 million tonnes of iron ore concentrate.
Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company’s Kaunisvaara Project will exploit magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process yields a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Ore Copper Gold Project in northern Finland.
Peab is an innovative construction and civil engineering company which combines the strengths of a large group with those of a local company’s ability to create flexible solutions. Net sales 2010 were SEK 38 billion and the company employs approximately 14,000 people across the Nordic region. More info on www.peab.com
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