Northland Resources Operational Update-March 2013
Northland Resources Operational Update-March 2013
LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 03/22/13 -- Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) ("Northland" or "the Company") announces its seventh bi-monthly operational and construction update on the Kaunisvaara project. During this period, January 24, 2013 - March 22, 2013, Northland has amongst other things shipped its first iron ore concentrate to end customer Tata Steel.
-- First shipments of concentrate left the Port of Narvik on February 25, 2013 -- The first Kaunisvaara process line in hot commissioning/production -- Logistics chain proven solid and is operating as planned -- The permanent storage building in Narvik has been completed and is operational. The building can store up to 210,000 tonnes of iron ore concentrate and is a vital part in the efficient loading of the Company's product -- The Company plans to produce 1.5 dmt(1) in 2013 and to reach the production capacity of 4.0 dmtpa(2) at the beginning of third quarter of 2014 -- Due to the current financial situation and the ongoing reorganization of Northland's three Swedish subsidiaries, the Company has as a first step, re-phased its capital investment program to a level to better meet its current cash flow. The Company has agreed with its bondholders for additional short-term funding to maintain the present operations. The assessment is that this re-phasing will not have any material impact on the Company's long-term production plan. For more details, please refer to Unaudited Year-End and Q4 2012 Report published on February 26, 2013 and subsequent press releases
THE MINE AND PROCESSPLANT
-- The first Kaunisvaara process line in hot commissioning/production -- The second Kaunisvaara process line has progressed 65% of the assigned time plan
-- Commissioning is close to completion -- Northland is currently producing approximately 2,500 tonnes of iron ore concentrate per day -- The quality of the product is well in line with planned specifications -- Northland has on March 22, 2013 in total produced more than 123,000 tonnes of iron ore concentrate
THE LOGISTICS CHAIN
-- The logistics chain is operating as planned. Approximately 81,000 tonnes of iron ore concentrate have been transported to Narvik -- The rented box cars will be used until the arrival of the specially designed railcars from Kiruna Wagon -- To date 26 railcars have been manufactured according to Northland specification. -- 55,000 tonnes of iron ore concentrate has been shipped out of the Port of Narvik -- About 55,000 tonnes of concentrate was loaded onboard the first vessel and shipped to Northland's off-take partner Tata Steel on February 25, 2013. The vessel arrived at IJmuiden, the Netherlands, on March 2, 2013 -- The second ship is expected to load 55,000 tonnes of iron ore concentrate and to arrive in Narvik at the end of March, 2013
Pitkajarvi trans-loading terminal
-- The Pitkajarvi trans-loading terminal is now fully operational
-- The temporary loading facilities, that are used awaiting the completion of the new ore terminal at Narvik, is operational. The terminal is operated by Grieg Logistics AS -- Construction of the permanent Fagernes Terminal remains on schedule and is expected to be completed in August, 2013 -- Construction of the storage building is completed -- One out of two boom stackers has been delivered -- Quay construction expected to be complete end of March, 2013 -- The next important milestone is the unloading facilities, expected to be operational in July 2013 -- Ship-loader is expected to be erected in June, 2013 and operational by August, 2013
Health & Safety
Lost Time Injury Frequency Rate ("LTIFR") according to the Swedish standard(3) from the end of February 2012 until end of February 2013 was 3.10 (3.18 for the previous period that ended December 31).
The corresponding number according the international standard(4) for the same period was 0.50 per 200,000 worked hours (0.52 for the previous period that ended December 31).
There was one LTIFR incident reported for both the International and Swedish standards during this period, January 1-February 28 (November 1-December 31: one).
A total of 52 near hits were reported for the same period (previous two-month period: 40).
Pellivuoma is located approximately 15 km west of Sahavaara. The Company controls 100% of the exploration permit, which totals 11,346 hectares. The deposit constitutes potentially significant additional tonnage in the Kaunisvaara area.
The DFS report for the Pellivuoma deposit is expected to be published shortly after a long term financial solution has been secured.
The recruiting process of operators to new mining machines is ongoing, as well for the planning department (surveyors, planner, mine engineer and sampler for drill cuttings).
Next Operational Update
The eight issue of Operational Update is expected to be published on May 30, 2013.
Financial Statements and MD&A for the first quarter 2013
The Company will publish its Financial Statements and Management's Discussion and Analysis for the period ending March 31, 2013, on May 8, 2013.
To view the images associated with this release, please visit the following link: http://media3.marketwire.com/docs/nr322_Images.pdf
Additional photos and video clips are available on Northland Resources' website, www.northland.eu.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. 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 the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.
This announcement may include "forward-looking" statements within the meaning of applicable securities laws. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are expectations concerning, among other things, Northland Resources results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Northland Resources' actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if Northland Resources' results of operations, financial condition and liquidity, and the development of the industry in which Northland Resources operates are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
(1) Dry million tonnes
(2) Dry million tonnes per annum
(3) Lost Time Injury Swedish standard as adopted by SveMin members: Absence of one shift or more from regular duty following the accident. Reference period: 1 million worked hours.
(4) International Lost Time Injury definition: Absence of three shifts or more from regular duty following the accident. Reference period: 200,000 worked hours. Contacts: Northland Resources S.A. Karl-Axel Waplan President and CEO +46 705 104 239
Northland Resources S.A. Eva Kaijser CFO +46 709 320 901
Northland Resources S.A. Anders Antonsson Vice President - Investor Relations +46 709 994 970 www.northland.eu