Bird & Bird has assisted Northland Resources to secure the delivery of iron ore concentrate through the Port of Narvik in Norway to customers worldwide from the beginning of 2013. The agreements have a total value of approximately USD900 million.
Northland is an international mining company, listed on the stock exchanges in Toronto and Oslo. The company controls two adjacent mining projects; the Kaunisvaara iron ore project close to Pajala in Sweden and the Hannukainen iron ore project with elements of copper and gold outside Kolari in Finland.
Northland is less than one year away from starting production at the Tapuli mine in Kaunisvaara. The company has signed final agreements with Peab AB, Savage Services Corporation, Grieg Logistics AS and Kiruna Wagon AB to manage and develop the logistics solution between Kaunisvaara and the Port of Narvik from2013. In 2013, 1.3 million tonnes of iron ore concentrate is expected to be transported from Kaunisvaara to Narvik, ramping up to full production of more than 4 million tonnes by 2015.
Bird & Bird assisted Northland in drafting and negotiating agreements, which are in effect until the end of 2021 and have a total value of approximately USD900 million. Since February 2012, the logistics solution of the overall project is included in the wholly-owned subsidiaries Northland Logistics AB and Northland Logistics AS. The solution gives Northland full control of the logistics chain.
The agreements mean that Savage will supply the management service for the whole logistics chain, including overall responsibility for the coordination, as well as operating the train transportation from the transload terminal at Pitkäjärvi to the Port of Narvik via railway “Malmbanan”. Peab will be responsible for the trucking operation from Kaunisvaara to the transload terminal at Pitkäjärvi, and will also be responsible for the construction of the entire infrastructure at the terminals at Fagernes in Narvik and in Pitkäjärvi. Grieg will operate the Fagernes Terminal in Narvik and Kiruna Wagon will deliver 150 wagons to be used for transporting the iron ore on Malmbanan.
Bird & Bird continuously assists Northland Resources in the development and financing of its portfolio of iron ore projects in northern Sweden and Finland. Recently, we assisted Northland when launching an equity offering of the equivalent of USD 325 million as well as a senior secured bond offering equivalent of USD 350 million, to supply the Kaunisvaara project with necessary funds until it generates a positive free cash flow, as well as to realise a so-called DFS, Definitive Feasibility Study, for the Hannukainen project.
Karl-Axel Waplan, Northland’s President and CEO commented: “We chose to cooperate with Bird & Bird because of their solid experience of the mining industry and we are very pleased with their commercially focused service and availability. Jim and his team have been very much appreciated during the whole process and have contributed not only from a legal perspective but also from a strategic point of view.”
The Bird & Bird team was led by Stockholm-based partner Jim Runsten assisted by a team from our Stockholm, Helsinki and London offices.
For more information about Northland, please visit www.northland.eu.
For more information please contact:
Jim Runsten, Partner Bird & Bird,
+46 8 506 320 43, firstname.lastname@example.org
Fredrika Ahnborg, Communication & PR Bird & Bird,
+46 8 501 097 21, email@example.com