Truck agreement signed for the Kaunisvaara project
9/6/2012 12:40 AM EST
Luxembourg, September 6, 2012 - Northland Resources S.A. (TSX: NAU, OSE:
NAUR and NAUR R, Frankfurt: NPK - "Northland" or the "Company")
announces that its contractor, Peab, has entered into a SEK 1.5 billion
agreement with Scania Group ("Scania") for the purchase of 400 truck-and
-trailer combinations and services during a nine-year period. The rigs
are optimised for gross weights of up to 90 tonnes.
Northland Resources is forecast to start production of high-grade iron
ore concentrate in the fourth quarter of 2012, and to start shipping the
product to its customers in early 2013. Peab, through its subsidiary
Swerock, will be responsible for trucking Northland Resources' iron ore
product 150 km from the mine site in Kaunisvaara to Pitkäjärvi, where
the product will be reloaded on rail wagons for further transportation
to the deep- water and ice-free port in Narvik, Norway.
"This agreement between Scania and Swerock is very important for the
success of our iron ore project in Kaunisvaara", said Willy Sundling,
Project Manager - Logistics at Northland Resources. "We can now rest
assured that the deliverance of our high-quality product will commence
as planned in the first quarter of next year".
The agreement will commence in late 2012 and be effective until 2021.
Besides delivering the truck combinations, Scania will be responsible
for driver training and coaching, vehicle monitoring, maintenance,
repairs, service and supplies. Scania has also agreed to meet Northland
Resources' requirement to continually reduce the cost per tonne
transported during the nine year period. The products and the services
are tailored to the mining industry's very strict demands in respect of
load capacity, uptime and delivery precision.
"Karl-Axel
Waplan"
President & CEO, Northland Resources S.A.
For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Peder Zetterberg, Acting CFO, +46 708 652 120
Anders Antonsson, Vice President - Investor Relations: +46 709 994 970
Marguerite Manshreck-Head, Investors Relations,Canada: +1 647 224 7882
Or visit our website: www.northland.eu
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 initially exploit two magnetite iron ore deposits in
Sweden. The process will yield a high-grade, high-quality magnetite iron
concentrate. The construction of the Kaunisvaara project in Sweden is
well underway and mining is expected to start in the fourth quarter of
2012. Northland has entered into off-take contracts for the entire
production from Kaunisvaara over the next seven to ten years. The
Company is also preparing a Definitive Feasibility Study ("DFS") for its
Hannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari, northern
Finland and for its Pellivuoma deposit 15 km from the Kaunisvaara
process plant.
Scania is one of the world's leading manufacturers of trucks and buses
for heavy transport applications, and of industrial and marine engines.
Service-related products account for a growing proportion of the
company's operations, assuring Scania customers of cost-effective
transport solutions and maximum uptime. Scania also offers financial
services. Employing some 37,500 people, the company operates in about
100 countries. Research and development activities are concentrated in
Sweden, while production takes place in Europe and South America, with
facilities for global interchange of both components and complete
vehicles. In 2011, net sales totalled SEK 87.7 billion and net income
amounted to SEK 9.4 billion. Scania press releases are available on
www.scania.com
Swerock, a subsidiary of Peab, 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 2011 were SEK 40 billion and the company employs approximately
15,000 people across the Nordic region. For more information, go to
www.peab.c