Northland Secures the Electricity Price for 2013
LUXEMBOURG, LUXEMBOURG--(Marketwire - May 15, 2012) - Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(OSLO:NAUR.R)(FRANKFURT:NPK) ("Northland" or the "Company") is pleased to announce hedging of its prices for the supply of electricity for its Kaunisvaara project for the next year.
Northland has hedged its prices for the electricity through a contract with Vattenfall, the Swedish power company. The agreement is for "Base blocks", equivalent to approximately 70 percent of the estimated total amount required for the production in 2013.
"As we are ramping up to full production of high-quality magnetite concentrate in Kaunisvaara, we will gradually increase our consumption to a total of 500 GWh. The agreed level is considerably below the 0.45 SEK/kWh (USD 0.06) assumed in the DFS," said Peter Pernlof, Chief Operating Officer and VP - Procurement and Energy. "As we are approaching full production in Kaunisvaara, Northland will grow to become one of the larger consumers of electricity in Sweden. A foreseeable and competitive power market is imperative for the development of the mining industry."
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will initially exploit two magnetite iron ore deposits in Sweden. The process will yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project in Sweden is well underway and mining is planned to start in the fourth quarter of 2012. Northland has entered into off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari, northern Finland and for its Pellivuoma deposit 15 km from the Kaunisvaara process plant.
Vattenfall is one of Europe's largest generators of electricity and the largest producer of heat. Vattenfall's main products are electricity, heat and gas, and the Group works in all parts of the value chain: generation, distribution and sales. The Group has approximately 34,700 employees. The Parent Company, Vattenfall AB, is 100%-owned by the Swedish state. The core markets are Sweden, Germany and the Netherlands.
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