Northland Resources breaks ground for Kaunisvaara project
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Northland Resources SA, Luxembourg-registered development-stage mining company with iron ore assets in Sweden, has announced that it signed agreements with two suppliers who will begin the construction of the Kaunisvaara project in northern Sweden.
The signing took place at the ground-breaking celebration for the Kaunisvaara project in the presence of the governor of Norrbotten and the mayor of Pajala as well as members of parliament.
On December 14, 2010, the board of directors of Northland gave approval to move forward on the Kaunisvaara project.
According to a company release, agreements were signed with Swedish construction and civil engineering company Peab AB for pre-development work such as the construction of roads, trenches and dykes within the mine area, and with Swedish energy company Vattenfall Distribution AB for the building of two new over-head power lines, one of 130kV and one of 40kV which will supply the mine with sufficient electrical power.
Proven and probable reserves at Tapuli and Sahavaara, which make up the Kaunisvaara project, total 176 million mt with an average iron ore grading of 32.53 percent Fe. When Kaunisvaara reaches full capacity during 2014, Northland is planning to produce 5 million mt of iron ore concentrate per year.