LUXEMBOURG, LUXEMBOURG--(Marketwire - Dec. 18, 2012) - Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) ("Northland" or the "Company") is pleased to announce that the first concentrate has been transported by rail on the Malmbanan railway, from Pitkäjärvi to the Port of Narvik.
Northland Resources started ramping up production of high-grade, high-quality iron ore concentrate on December 4, 2012. Since then, the concentrate has been trucked 150 km to Northland's new trans-loading terminal in Pitkäjärvi, outside Svappavaara. From Pitkäjärvi the product will be transported by rail on the high capacity railway Malmbanan (the Ore Railway) to Narvik, a distance of 226 kilometers.
During the weekend three trains reached the Port of Narvik, carrying Northland's concentrate. Each train set comprised of 27 rented box rail cars. The concentrate will be stored at Northland's interim terminal area before loaded on vessels for further shipment to customers early in the first quarter of 2013.
"This is yet another important milestone in the ramp-up phase as the logistic chain has worked as planned," said Willy Sundling, Project Manager - Logistics at Northland. "We have proved that our logistic solution is very robust, also during low temperatures. In the beginning of this year, Northland decided to work with strong logistical partners with a proven track record - that has paid off. We will now continue the tests of equipment and training of staff, with the aim to be fully operational in the beginning of first quarter next year."
Cliffton Mining, a subsidiary to Peab AB, is operating the trucking between the mine in Kaunisvaara and Pitkäjärvi. Green Cargo is operating the railway transports from Pitkäjärvi and Narvik. Grieg Logistics AS is responsible for the port operation. Coordination of the logistics chain in carried out by Savage Service Corporation.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara Project is complete and production ramp-up started in November 2012. The Company will produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company will exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara Project 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 the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.