LUXEMBOURG, LUXEMBOURG--(Marketwire - March 26, 2012) - Northland Resources S.A. (TSX:NAU)(FRANKFURT:NPK)(OSLO:NAUR) ("Northland" or the "Company") has signed a service contract with Metso to ensure a smooth start-up and running of the process plant which will produce high-quality magnetite concentrate from Kaunisvaara.
"Metso is the largest supplier to the Kaunisvaara project and signing of the contract today will take the partnership one step further as Metso will assume responsibility for the start-up, operation and maintenance of these items", said Peter Pernlöf, Northland's Chief Operating Officer.
The service contract includes staffing for the commissioning and completion, performance-guarantee testing, control of scheduling and quality, inventorying of spare parts and maintenance of the equipment related to the Kaunisvaara process plant.
Metso will be delivering the primary crusher, semi-autogenous mills, pumps, other equipment, material and tools starting during the second quarter 2012 and will begin to move in staff to Kaunisvaara at the beginning of April 2012. The contract, which will run for six years, is valued at almost USD 100 million.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
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 is expected to yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is well underway and production is planned to start in the fourth quarter of 2012. Northland has entered into industrial off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for its Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland.
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