Northland Secures the Electricity Price for 2013
LUXEMBOURG, LUXEMBOURG, May 15, 2012 (Menafn - MARKETWIRE via COMTEX) --Northland Resources S.A. (oslo:NAUR)(oslo:NAUR.R)(frankfurt:NPK) ("Northland" or the "Company") is pleased toannounce hedging of its prices for the supply of electricity for itsKaunisvaara project for the next year.
Northland has hedged its prices for the electricity through acontract with Vattenfall, the Swedish power company. The agreement isfor "Base blocks", equivalent to approximately 70 percent of theestimated total amount required for the production in 2013.
"As we are ramping up to full production of high-quality magnetiteconcentrate in Kaunisvaara, we will gradually increase ourconsumption to a total of 500 GWh. The agreed level is considerablybelow the 0.45 SEK/kWh (USD 0.06) assumed in the DFS," said PeterPernlof, Chief Operating Officer and VP - Procurement and Energy. "Aswe are approaching full production in Kaunisvaara, Northland willgrow to become one of the larger consumers of electricity in Sweden.A foreseeable and competitive power market is imperative for thedevelopment of the mining industry."
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a development-stage mining company with a portfolio ofiron ore projects in northern Sweden and Finland. The Company'sKaunisvaara Project will initially exploit two magnetite iron oredeposits in Sweden. The process will yield a high-grade, high-qualitymagnetite iron concentrate. The construction of the Kaunisvaaraproject in Sweden is well underway and mining is planned to start inthe fourth quarter of 2012. Northland has entered into off-takecontracts for the entire production from Kaunisvaara. The Company isalso preparing a Definitive Feasibility Study ("DFS") for itsHannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari,northern Finland and for its Pellivuoma deposit 15 km from theKaunisvaara process plant.
Vattenfall is one of Europe's largest generators of electricity andthe largest producer of heat. Vattenfall's main products areelectricity, heat and gas, and the Group works in all parts of thevalue chain: generation, distribution and sales. The Group hasapproximately 34,700 employees. The Parent Company, Vattenfall AB, is100%-owned by the Swedish state. The core markets are Sweden, Germanyand the Netherlands.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
46 705 104 239
Northland Resources S.A.
Peder Zetterberg
Acting CFO
46 708 652 120
Northland Resources S.A.
Anders Antonsson
Vice President - Investor Relations
46 709 994 970
Northland Resources S.A.
Marguerite Manshreck-Head
Investors Relations, Canada
1 647 224 7882
www.northland.eu
SOURCE: Northland Resources S.A.
http://www.northland.eu
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