Northland Resources has signed a distribution agreement with Pon Mining International - Pon Equipment to supply Caterpillar and Bucyrus mine mobile equipment for the Kaunisvaara Project, which is sited in Northern Sweden, which is around 100 km north of the Arctic Circle, in the municipality of Pajala.
President and CEO of Northland, Karl-Axel Waplan and Director of Pon Mining International - Pon Equipment, Mikael Krispinsson signed the agreements in Pajala.
The importance of this project is having access to the necessary sections of mining equipment. This distribution agreement is a vital contract for the Kaunisvaara Project. The major experience and service ability of Pon Mining International will assist and considerably decrease Northland’s operational risks.
This contract for mine equipment contains the delivery of all crucial mobile equipment up to 2015. According to the order, Pon Mining has to provide 23 machines as well as two large O&K RH340 Electric Front Shovels, 12 Cat 226 Tonnes 793F haul trucks, several large CAT 994F wheel loaders and numerous graders and dozers. The first set of equipment will be delivered in the middle of 2012 and make sure of the successful increase in mining operations.
The process plant’s annual capacity will be 12 million tonnes of iron ore after completion and will produce 5 million tonnes of iron ore concentrate.