On February 1, Canadian exploration and development company Northland Resources S.A. and the Swedish Rail Administration announced that an additional step has been taken to realize an entirely new railroad to the Pajala new iron ore mines in Northern Sweeden. Accordingly, the two parties have signed a memorandum of understanding regarding the co-financing of the rail line.
According to the announcement, the rail line will extend from the planned new iron ore mines at Kaunisvaara in the municipality of Pajala, to the Finnish rail line east of the Muonio River. Construction is estimated to cost between SEK 750 million ($103.21 million) and SEK 1.25 billion ($172.01 million). The goal is to have the new railroad ready by 2013.