November 17, 2009  Northland Resources Inc. (Northland) advises that Northland has taken another important step in developing its iron assets in Northern Sweden and Finland. Northland, Havator Group Oy and Euroports Holding have signed a Letter of Intent (LOI) concerning the development of a bulk shipping terminal at the Port of Kemi.

 

Havator of Tornio and Euroports (Luxembourg) have formed a new, jointly-owned company, Kemi Bulk Terminal (KBT). The LOI states that KBT will undertake the development of all necessary terminal equipment, installations and storage facilities for the initial handling of approximately 5 million tonnes per annum of iron concentrate.   KBT will make all the necessary investments and will also take care of all terminal operations, including rail discharging, storage and the loading of vessels, for the account of Northland.

 

The objective of KBT is to develop bulk handling systems at the Port to serve the needs of Northland's mining projects in Kolari, Finland and Pajala, Sweden.  Production from Northland's Kaunisvaara Iron Concentrate Project is forecast to begin in 2012, with approximately two million tonnes of iron concentrate being delivered to the Port of Kemi via the Kolari rail line the first year.

 

Anders Hvide, the Executive Chairman of Northland stated, "This agreement is important to Northland in regards to de-risking the Kaunisvaara Iron Concentrate Project.  In the mining business, transport and logistics are among the most critical economic factors, and their optimization is of paramount importance to us. I believe that we have found the best possible partners for this.  We will benefit from their strong local and international expertise in the handling of mining products and logistics.  Kemi is by far the best available option, thanks to its location close to the mines. The shorter the distance for land borne transports, the better the cost efficiency and therefore Kemi is without any doubt the best port for our purposes."

 

Havator, which operates in the Nordic countries and Russia, is an expert in lifting and special transport solutions.  Havator and its predecessor Hanhirova-Group have been involved in every significant mining project in northern Finland and the Norrbotten area.  The development of the Port of Kemi will offer Havator the possibility of designing new loading and processing equipment, which can be used in the long-term transport of various materials and minerals.

 

Euroports is one of the largest port operators in continental Europe, handling some 65 million tonnes annually of various commodities, with a strong focus on dry bulk products.  Euroports has port operations at 16 locations across continental Europe plus one port in China.  Euroports is already active in Finland, operating in the ports of Rauma and Pietarsaari.

 

The development of a bulk shipping terminal at the Port of Kemi will have a significant local impact on employment and will be a positive economic stimulus for the area.

 

 

 

Anders Hvide, Executive Chairman, Oslo: Tel. +47 92 88 98 58

Deborah Craig, Vice President, Northland Resources AB, Stockholm: Tel. +46 70 638 4300