Northland Resources SA announced that the agreement between the Port of Narvik and Northland today was confirmed by the Board of Narvik Havn KF.
The agreement grants Northland the permit to lease the Narvik Terminal, Fagernes, south of the city centre. A temporary shipping facility will be constructed on the site and will consist of a quay, a depot, a conveyor belt, a de-icing facility, and an unloading facility for the railcars and railway lines.
The agreement is for a minimum of 10 years and Northland will work actively together with Narvik Havn towards establishing a permanent shipping facility in or around the Narvik area to be ready after that period.
Mr Karl Axel Waplan president & CEO of Northland Resources said “Narvik has been a significant port for shipment of iron ore for more than one hundred years. Its experience in handling bulk products and its geographic advantages were the key reasons why Northland selected Narvik a year ago. We are very pleased that the Narvik Authorities have provided the final approval which will allow us to start construction of the new terminal and ancillary infrastructure so that it will be ready for the first shipment of high-grade, high quality iron concentrate from our mines in Kaunisvaara at the beginning of 2013."
Mr. Hans Larsen chairman of the board of Narvik Havn KF said “The Port of Narvik, as the major ore port in Scandinavia, is satisfied to have come to an understanding with Northland in establishing port possibilities for shipping iron ore.”
As previously announced, Northland has signed a letter of intent with three specialist logistic companies to manage and develop the transportation solution between the Kaunisvaara mines and the port of Narvik. The three partners are Savage Service Corporation, Peab and Grieg Logistics. Savage will carry 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.
Port of Narvik is since 1902 the key shipping point for the products from LKAB's mines in Kiruna. Narvik is ice free throughout the year, and accommodates the largest ships expected to carry Northland's products to customers in Europe, Middle-East and Asia as of the beginning of 2013.
