Northland Signs Off-take Agreement with Tata Steel
11/03/2010 - Northland Resources S.A. has concluded a long-term off-take agreement with Tata Steel UK Ltd. for a total of 6 million tonnes of iron ore concentrate from the Kaunisvaara Iron Ore Project in northern Sweden. Production is scheduled to begin in 2012.
Northland Resources S.A. has concluded a long-term off-take agreement with Tata Steel UK Ltd. for a total of 6 million tonnes of iron ore concentrate from the Kaunisvaara Iron Ore Project in northern Sweden.
Subject to final technical approval, the contract is for an initial seven-year period. Production is scheduled to begin in 2012. The pricing structure will reflect the value-in-use of the Kaunisvaara iron ore product. The iron ore will primarily be shipped to Tata Steel’s plants in Europe.
In addition to the purchase and sale of iron ore concentrate, the parties have agreed to a close technical cooperation that will enhance product quality.
This is the second off-take agreement that Northland has signed. The first—for the delivery of 1 million tonnes per year of Kaunisvaara concentrate—was with Stemcor.
When Kaunisvaara reaches full capacity during 2014, Northland is planning to produce 5 million tonnes of iron ore concentrate per year.
“We are extremely pleased that Tata Steel has recognized our high-grade magnetite product in this way, underlining our belief that the Kaunisvaara product will provide significant value to the iron-making process,” said Karl-Axel Waplan, President and CEO of Northland Resources S.A.
Northland is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland. Its Kaunisvaara Project contemplates the staged development of three magnetite iron ore deposits that would provide feed to a single, multi-line processing facility in Sweden, producing a high-grade, high-quality magnetite iron concentrate. The results of the Feasibility Study on the Kaunisvaara Project were released on September 27, 2010.
Established in 1907, Tata Steel Group is one of the world's top 10 steel producers with annual crude steel capacity of more than 28 million tonnes. It is the world's second most geographically diversified steel producer, with operations in 26 countries and a commercial presence in more than 50 countries. The Group has more than 80,000 employees across five continents and is a Fortune 500 company.
