Northland Resources SA announced that an agreement between Northland and Pon Mining International Pon Equipment AB was signed for the supply of Caterpillar and Bucyrus mine mobile equipment for the Kaunisvaara Project.

The agreements were signed in Pajala by Karl-Axel Waplan, President and CEO of Northland and Mikael Krispinsson, Director of Pon Mining International Pon Equipment AB.

Mr Karl-Axel Waplan president & CEO of Northland said that "This is one of the key agreements for the Kaunisvaara Project. The access to the essential pieces of mining equipment is of vital importance to the Project. With this agreement, we will be able to keep to our project schedule. We believe that Pon Mining International's significant experience and service capability will benefit and substantially reduce the operational risks for Northland going forward."

The mine equipment order covers the supply of all key mine mobile equipment up to 2015. The order is for the supply of 23 machines including two large O&K RH340 Electric Front Shovels, 12 Cat 226 Tonnes 793F haul trucks, a number of large CAT 994F wheel loaders and a number of graders and dozers. The delivery of the first batch of equipment is scheduled for the middle of 2012 ensuring the successful ramp up of mining operations.

The Kaunisvaara Iron Ore Project is located in Northern Sweden, approximately 100 km north of the Arctic Circle, in the municipality of Pajala. After its completion, the annual capacity of the process plant will be 12 million tonnes of iron ore from which 5 million tonnes of iron ore concentrate will be produced.