Northland Resources SA announced that the company has signed a letter of intent with three logistic specialist companies to manage and develop the logistics solution between the Kaunisvaara mines and the port of Narvik.

Mr Karl Axel Waplan president & CEO of Northland said that "We are pleased to welcome Grieg Logistics and Savage Services Corporation as partners in our ambition to build a strong and cost-efficient logistic chain. Together with Peab, we now have a corporation with three well renowned companies with long term expertise and commitment to build a strong partnership."

The letter of intent will replace the previously announced letter of intent with Peab. Northland will commission its partners to organise and manage the entire logistic chain from Kaunisvaara to the vessels in the port of Narvik.

The intention is that:

Savage shall assume the overall responsibility for the coordination, management and cooperation between the three parties and coordinate the work program. In addition, Savage will ensure an appropriate railway transport solution through the procurement of subcontractors and rail operators.

Peab will be responsible for the operation of road transport by truck as well as the construction of the infrastructure necessary at the Svappavaara terminal and Port of Narvik.

Grieg Logistics will be responsible for the operation of the terminal facility in the port of Narvik.

The agreement is expected to be finalized and signed before the end of third quarter of 2011.