Northland Signs MOU with Port Authority of Kemi and City of Kemi / Appoints Director to the Board

Thu, Nov 20, 2008 06:30 CET Report this content

November 20, 2008:  Mr. Buck Morrow, President of Northland Resources Inc., is pleased to advise that Northland has signed a Memorandum of Understanding ("MOU") with the Port Authority of Kemi in Finland, and its owner, the City of Kemi (Port). 

 

In the MOU, Northland commits to ship the full iron ore production from the Tapuli mine via the Port of Kemi. In return, the Port of Kemi and the City of Kemi commit to reserve suitable land and space for Northland to build facilities for the safe and efficient storage and handling of Tapuli's full concentrate production. 

 

Mr. Morrow stated, "We believe the Port of Kemi will be ideal for the storage and loading of our planned Tapuli production, and we welcome the opportunity to work closely with the Port of Kemi on this initiative."

 

The MOU addresses Northland's interest in using the Port of Kemi as a port of loading for its Tapuli concentrate. At full production, the Tapuli project should produce up to 3 Mtpa of high quality Fe concentrate. Joint studies between Northland and the Port of Kemi have demonstrated that the port can be developed to accommodate this production. Northland believes it will be most cost-effective to ship the entire Tapuli production from the Port of Kemi when production at Tapuli begins, currently forecast for mid-2011.

 

Northland and the Port of Kemi will continue to work together to develop these expansion plans, focusing mainly on the Tapuli production, but also taking into consideration the other iron ore projects that Northland has planned for development.

 

The Tapuli iron ore project is located in northern Sweden. The concentrate will be trucked 28 kilometres to an existing rail line at Kolari, Finland for transport to the Port of Kemi, Finland. There, the concentrate will be loaded onto ships for transport to potential customers in Europe, North Africa or the Middle East.