Northland Resources has contracted Metso to supply the mineral processing equipment and services for the two processing lines at Northland’s Kaunisvaara iron ore project in northern Sweden. The order is valued at $293 million and covers the complete equipment package for the processing plant,including two primary gyratory crushers, two AG mills, seven vertical grinding mills (VTM 3000), magnetic separators and seven VPA press filters. The agreement also includes engineering, electrical and automation and the construction of the process plant. Given the long lead times for the first primary gyratory crusher, an AG mill and three vertical grinding mills, they have already been ordered.

The deliveries for the Tapuli and Sahavaara process lines are scheduled for mid-2012 and for first and second quarters of 2014, respectively. In a move toreduce the impact of inflation on the project, the price levels on the equipment have been fixed.

“We are very pleased to have partnered with Metso for the mineral processing equipment and services. Access to the long lead items, and Metso’s track record as a reliable supplier of equipment and services to mining companies operating in northern Sweden were critical factors in our decision-making. This agreement supports our goal of keeping the project on time and on budget,” said Karl-Axel Waplan, President and CEO of Northland.

The Kaunisvaara iron ore project is located in Northern Sweden, about 100 km north of the Arctic Circle, in the municipality of Pajala. Upon completion, the annual capacity of the process plant will be 12 Mt of dry iron ore and 5 Mt of iron ore concentrate.

Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Kaunisvaara Project will exploit magnetite iron ore deposits, feeding a single, multi-line processing facility. The process yields a very high-grade, high-quality magnetite iron concentrate. The company is also preparing a Definitive Feasibility Study for the Hannukainen iron ore/copper/gold project in northern Finland.