Co-financing makes a new railroad possible in Pajala
February 1, 2010 Northland Resources S.A. and the Swedish Rail Administration are pleased to announce that an additional step has been taken to realize an entirely new railroad to new mines in Pajala. The goal is that the mining company and the Swedish Rail Administration jointly finance the railroad. The mining company Northland Resources S.A. and the Swedish Rail Administration have now signed a Memorandum of Understanding regarding the co-financing of the rail line.
- "This is an important project which contributes to increased growth and new job opportunities in Sweden and Finland and therefore has great significance for the development of Sweden in general, and for northern Sweden, in particular," stated Minoo Akhtarzand, Director-General of the Swedish Rail Administration.
- "We are pleased and proud of the results that we have seen from earlier joint efforts with the Swedish Rail Administration. Now we are formalizing our long-standing cooperation with a Memorandum of Understanding," stated Karl-Axel Waplan, President and CEO of Northland Resources S.A.
The mining company will be responsible for an amount corresponding to the cost of alternative transport solutions. The commitments will be defined later in an implementation agreement. A condition precedent is that the project is part of the national plan for the transport system 2010-2021, which the Swedish Government will finalise this spring.
It is thought that the rail line would extend from the planned new iron ore mines at Kaunisvaara in the municipality of Pajala, to the Finnish rail line east of the Muonio River. Construction is estimated to cost between MSEK 750 and 1,250. In addition, there is a need for an upgrade of the connecting railroad on the east side of the Mournio River; this is being planned by the Finnish Transport Agency.
The goal is to have the new railroad ready by 2013. This will be unique for Sweden as the railroad will be built with Finnish-gauge track, which is wider than Swedish track.
For comments, please contact:
Northland Resources S.A.
Karl-Axel Waplan, President and CEO: +46 705 104 239
For additional information, please contact:
Northland Resources S.A.
Jonas Lundström, Director of Corporate Communications, Luleå: Tel. +46 705 493 338
Swedish Rail Administration
Annica Lindström, Regional Director: +46 920 352 29