Northland Resources AB
Northland Resources is an international mining company, emerging as a major European iron ore concentrate producer. We are a publicly listed company with one iron ore mine in production and also other development projects in an established major iron ore province located on both sides of the border between Sweden and Finland.
Northland reached its goal to start the production of it´s high grade iron ore concentrate at the end of 2012 and made the first shipping to the market in beginning of 2013. The progress of the Kaunisvaara mine project has continued according to the time schedule.
In a very short time, less than two years from the project implementation start the overburden removal in Tapuli open pit was done, the facilities for the process – primary crusher, screening plant, the first stockpile for iron ore from Tapuli open pit, and finally the process plant with the primary mill and secondary grinding and other equipment necessary for the production of the high quality iron ore concentrate, were built and assembled ready for commissioning.
Northland made the first iron ore blasting in Tapuli open pit on 18th of October. It was a very important milestone in the company’s history. Shorter than two months later the operation in the process plant started and the first trucks loaded with the iron ore concentrate left the mining area at the early December.
The first stop in the logistic chain is the transloading terminal in Pitkäjärvi. The next step is to take the concentrate by rail from Pitkäjärvi to the port terminal in Narvik. Those transports started in December 2012 and the first ship, loaded with Northland´s iron ore concentrate, left the Port of Narvik 25th of februari 2012. The first shipment with 55 000 tons of high grade iron ore concentrate went to Ijmuiden in Netherland for our costumer, Tata Steel Europe.
The transport from Kaunisvaara mine area to Pitkäjärvi goes with purpose-built trucks. Through the special dispensation from Swedish Transport Authority the trucks can be loaded with up to 63,8 tons of concentrate. The gross weight of the loaded vehicle is 90 tons. To have a producing mine, you need employees of course and the size of Northland crew increased during the summer 2012, to approximately 100 people and at the start of 2013 to 220 people in the Swedish operations.
The logistic chain is based on cooperation and agreements with companies, responsive for each part of the chain:
• Savage Services Corporation – Manage the seamless logistics chain from Kaunisvaara to Narvik
• Peab AB(Cliffton Mining) – The transports by truck from Kaunisvaara to Pitkäjärvi
• Savage- Rail line service from the transload terminal at Pitkäjärvi to the Port of Narvik on the Malmbanan
• Grieg Logistics AS – Port operation in Narvik
• Peab – Construction work at Fagernes terminal in Narvik
• Green Cargo operates the trains from the Pitkäjärvi transloading terminal to the Port of Narvik.
• Kiruna Wagon – Delivers the wagons to be used on Malmbanan
The loading operation in Narvik will until the end of summer 2013 be made with an temporary solution, until the Ship loader is completely finished.
The first ships with Northlands iron ore concentrate have been and will continue be loaded with 55 000 tons. When the ship loader is taken into use, Northland will load the bigger ships, Cape Size Vessels, which can take between 140 000 and 180 000 tons of concentrate.
Early in 2013 Northland announced that they more money is needed to maintain positive cashflow. The result of the situation with financing was that the company applied, and received an reorganization. The refinancing result is planned to be announced during the spring 2013.
To be successful in the work with the reorganization it has been very important that the operation in the mine, process plant and of course the logistic chain continued according the time schedule and the quality of the iron ore is as high as expected. According to Hans Nilsson, Northland VP Market- that objective has been fulfilled. “The quality of our product is very good”, he says.
In addition to a successful development of Northlands own mine projects, the company hopes to see that the mining activities cause more people to find the opportunity to live in the beautiful and nature-close area, as Pajala offers.
The mine activities would then have the interrupted intended positive impact on the Pajala Municipality.