Northland Studies Possibility of Using Deep Water Port
(Thomson Reuters ONE) -
Luxembourg, July 21, 2010: Northland Resources S.A. ("Northland" or "the
Company") is studying the possibility of exporting its iron ore concentrate from
the existing Scandinavian port of Narvik, which already handles Cape-Sized dry
bulk cargo vessels from its deep water port. Northland also continues to
evaluate using the port at Kemi, Finland, and the two port studies will be
developed in tandem. The Company is in advanced discussions with potential
off-take parties in the Middle East and the Far East for a majority of its 5
Mtpa future production from the Kaunisvaara Iron Ore Project.
"The interest we have received from potential overseas customers makes it
necessary to investigate an additional port alternative in parallel to Kemi,"
stated Karl-Axel Waplan, President and CEO of Northland.
Exporting from a deep water port would provide a great advantage in maximizing
the received Free On Board price ("FOB") for overseas demand. The Port of
Narvik in Norway is presently used for the shipment of LKAB's (Sweden) iron
products. The Port can handle up to 250-300,000 dwt vessels and a substantial
amount of the required terminal infrastructure is already in place. This should
mean that the required terminal investments in Narvik could be substantially
lower than at the Port of Kemi. In addition, the use of the Port of Narvik,
compared to the Port of Kemi, should remove transshipment expenses, as the
existing Kemi alternative requires the transfer of iron ore concentrate from
Handy-Max to Cape-Size vessels. The Port of Narvik will also provide year-round,
ice-free export of iron ore concentrate.
As scheduled, the Management team presented the Board of Directors the draft
Definitive Feasibility Study (DFS) at the beginning of July. The Board reviewed
the results of the study and it was decided to review the possibility of using a
deep sea port before finalizing the DFS. Northland expects the studies on the
alternative port solutions to be finalized during late summer this year.
To reach the Port of Narvik, the Kaunisvaara concentrate would be trucked 120 km
to an existing heavy-haul railway between Sweden and Norway. The existing roads
and rail can handle Kaunisvaara's planned production volume. Initial
investigations suggest that the added cost of using trucks is more than offset
by reduced overall shipping costs to market and the higher received FOB price
for deliveries to the Middle East and the Far East markets.
Despite one of the partners in the Kemi Bulk Terminal ("KBT") consortium,
Euroports Holdings S.à r.l., withdrawing from the joint-venture, Northland and
Havator are continuing with discussions on a co-operation, both in respect of
the Kemi option as well as the Narvik option.
Karl-Axel Waplan
President & CEO
For more information please contact:
Karl-Axel Waplan, President & CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Or visit our website at: www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1433145]
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Source: Northland Resources S.A. via Thomson Reuters ONE
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Datum: 21.07.2010 - 10:24 Uhr
Sprache: Deutsch
News-ID 24216
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