The contract is for an initial seven year period and 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. "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," commented Mr. Karl-Axel Waplan, President and CEO of Northland Resources S.A. This is the second off-take agreement that Northland has signed. The first, which was for the delivery of 1 million tonnes per year of Kaunisvaara concentrate, was with Stemcor, the world's largest independent steel trader. When Kaunisvaara reaches full capacity during 2014, Northland is planning to produce 5 million tonnes of iron ore concentrate per year.
Source: Northland Resources S.A.