Road | 258 days ago |

Northland Resources S.A. announced that its contractor, Peab, has entered into a SEK 1.5 billion agreement with Scania Group (“Scania”) for the purchase of 400 truck-and-trailer combinations and services during a nine-year period. The rigs are optimised for gross weights of up to 90 tonnes.

Northland Resources is forecast to start production of high-grade iron ore concentrate in the fourth quarter of 2012, and to start shipping the product to its customers in early 2013. Peab, through its subsidiary Swerock, will be responsible for trucking Northland Resources’ iron ore product 150 km from the mine site in Kaunisvaara to Pitkäjärvi, where the product will be reloaded on rail wagons for further transportation to the deep- water and ice-free port in Narvik, Norway.

“This agreement between Scania and Swerock is very important for the success of our iron ore project in Kaunisvaara”, said Willy Sundling, Project Manager – Logistics at Northland Resources. “We can now rest assured that the deliverance of our high-quality product will commence as planned in the first quarter of next year”.

The agreement will commence in late 2012 and be effective until 2021. Besides delivering the truck combinations, Scania will be responsible for driver training and coaching, vehicle monitoring, maintenance, repairs, service and supplies. Scania has also agreed to meet Northland Resources’ requirement to continually reduce the cost per tonne transported during the nine year period. The products and the services are tailored to the mining industry’s very strict demands in respect of load capacity, uptime and delivery precision.