Invest in Norrbotten

Northland Resources breaks new ground in Kaunisvaara.

Beneath the bogs in Kaunisvaara in Norrbotten there lie what is known as “Europe’s last great iron ore deposit”. The European exploration and development company Northland Resources has drilled 350 metres down into the ground at Stora Sahavaara and has found at least 100 million tons of ore with high iron content. Together with the deposits in Swedish Tapuli and Pellivuoma and Finnish Hannukainen there is enough ore for at least 25 years of mining.

Northland Resources’ preliminary economic assessment carried out by leading mining experts, shows that the Kaunisvaara project is technically feasible and economically sound. Financing has been guaranteed by the investment banks Société Générale, UniCredit Bank AG and WestLB AG.

Northland Resources plans to begin mining in Kaunisvaara in 2012. The company is counting on producing five million tons of iron ore concentrate per year by as early as 2014. The ore will be transported along 18 km of newly laid railway across the border to Finland for transport to Kemi harbour and onward shipping.

Northland Resources is currently performing a diligent economic feasibility study as a final step before the company’s board presses the start button for iron ore extraction in Kaunisvaara. A decision from the Border River Commission on an environmental permit for ore extraction is expected before the summer.

Confidence in the future in Kaunisvaara is strong. Northland Resources prospecting continues. There are good possibilities of further deposits in Europe’s last great iron ore reserve.

Northland Resources is listed on the stock exchanges of Oslo, Frankfurt and Toronto. It began operations in Sweden and Finland in 2003. CEO Karl-Axel Waplan has over 30 years’ of experience in the mining industry. Among other things he has been the CEO for Lundin Mining and was responsible for the development of Boliden’s mine in Storliden.