HIGH GRADE PELLET FEED

The Process plant in Kaunisvaara under constructionNorthland Resources’ Kaunisvaara Project will in Q1, 2013, start deliver a very high grade magnetite concentrate with excellent properties for iron and steel making.

Its high Fe-content and low levels of impurities, especially the extremely low levels of silica (< 1.2%) and alumina (< 0.2%), are most valuable in all iron and steel making. Its particle size (80% passing 40 micron) and its elevated level of magnesia (2.5%) and low moisture content (<6%) make the product very interesting for pellet producers as a high grade pellet feed allowing them to mix with lower grade pellet feed from other suppliers.

“We have been very successful in our marketing of the product and are very happy to having secured off-take agreements for the full production over the first 7 years of production”, says Hans Nilsson, Vice President Marketing at Northland:

  • Tata Steel UK has, for its steel plant at IJmuiden (NL), committed to lift up to about 1 million tonnes per year up to and including 2019;
  • Stemcor, the world’s largest independent trader of steel and steel raw materials, has committed to lift about 1 million tonnes per year for 8 years from first production; and
  • Standard Bank has, through its physical trading company Standard Resources China Ltd in Singapore, committed to the remaining 60%, or about 3 million tonnes  full production is achieved, for a full 10 years from first production.


Pleased Vice President

“We’re very pleased with the diversity we have in our off-take agreements with about 20 per cent to one of the largest steel plants in Europe, 20 per cent to a very well established trader in iron ore for primarily the European market and the remainder with a well renowned bank with strong ties to the global mining industry and a well experienced team working with the Asian markets. Our agreement with Standard Bank is also based on very tight cooperation in marketing and sales to end-users in order to ensure that the product is sold to those customers who can best benefit from the value created by the very good product properties” says Hans Nilsson.

Hans Nilsson

VP - Marketing