Northland Resources S.A.

Northland Resources S.A.

July 19, 2011 03:01 ET

Northland Commissions Metso to Supply Comminution Services

LUXEMBOURG, LUXEMBOURG--(Marketwire - July 19, 2011) - Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NPK) ("Northland" or "the Company") is pleased to announce an agreement with Metso for a five-year mill lining service and inspection program for the Kaunisvaara mill. The project is under construction in northern Sweden.

The contract complements previous project orders that were announced by Northland earlier this year. The order, which will cover five years, is valued at EUR 19 million.

The Metso life-cycle services (LCS) program for Kaunisvaara includes both the supply and installation of the mill liners as well as technical and maintenance support for the semi-autogenous mill for the Tapuli process line. Metso on-site resources will also conduct liner inspections to maximize mill availability. The contract period will commence when the installation of the Tapuli process line is completed at the end of 2012.

"We're pleased to have concluded this contract as it maximizes the availability of our grinding line," said Shane Williams, Vice President – Projects, at Northland. "As this is a cost-per-tonne contract, we'll be able to forecast expenditures over an extended period of time. It will be a very useful asset in view of the total investment involved."

"We embrace the opportunity to partner with Northland in a five-year LCS commitment," says João Ney Colagrossi, President of Services business line, Metso. "The speed at which operations at Kaunisvaara are progressing is impressive and we are looking forward to further strengthening our relationship with Northland."

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 two magnetite iron ore deposits in Sweden. The process will yield a very high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is well underway and production is planned to start in the 4th quarter of 2012. Northland has entered into industrial off-take contracts which will last for 7–8 years for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland. The study is expected late in the 4th quarter of 2011.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. Metso has about 28,500 employees in more than 50 countries.

Karl-Axel Waplan, President & CEO

Northland Resources S.A.

Contact Information

  • Northland Resources S.A.
    Karl-Axel Waplan
    President and CEO
    +46 705 104 239

    Northland Resources S.A.
    Shane Williams
    Vice President Projects
    +46 767 61 61 81

    Northland Resources S.A.
    Anders Antonsson
    Vice President Investor Relations
    +46 709 994 970

    Northland Resources S.A.
    Marguerite Manshreck-Head
    Investors Relations, Canada
    +1 647 224 7882