Sweden-based development-stage mining company Northland Resources SA has announced that it has submitted an application to the environmental court in Umeå, Sweden for an environmental permit to operate the Sahavaara mine.
Three of the four key permits for the Kaunisvaara iron ore project have already been granted; exploitation permits according to mineral law for the Tapuli and Sahavaara deposits, and the operational permit for the Tapuli mine and the Kaunisvaara mill.
Northland's Kaunisvaara project contemplates the staged development of magnetite iron ore deposits that would provide feed to a single, multi-line processing facility in Sweden, producing a high grade, high quality magnetite iron concentrate.
Proven and probable reserves at Tapuli and Sahavaara total 176 million mt of ore grading 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.
The company secured long-term off-take agreements with Indian steel giant Tata Steel's UK-based subsidiary Tata Steel UK Ltd for a total of 6 million mt of iron ore concentrate in October. The contract is for an initial seven-year period and production is scheduled to begin in 2012.
The company also has a one million mt per year agreement with Stemcor, the world's largest independent steel trader based in London, UK.