Tata Steel takes delivery of first cargo of iron ore from Northland Resources
Tata Steel has taken delivery of the first shipment of iron ore from a new iron ore supplier, Northland Resources.
The MV Star Norita arrived at Tata Steel’s IJmuiden terminal in the Netherlands on 2 March loaded with 55,000 tonnes of high-grade iron ore pellet feed.
The ore comes from Northland Resources’ new mine, Kaunisvaara, in Sweden and was shipped via the Norwegian port of Narvik. It is thought Kaunisvaara could be the first entirely greenfield iron ore mine to start up in Europe for several decades.
Kees Gerretse, Tata Steel’s Group Procurement Director, said: “New sources of iron ore do not come to market every day, especially in Europe. We are delighted that Northland Resources has successfully shipped its first cargo from its new mine and look forward to receiving further shipments as our relationship grows under our long-term supply contract.”
At a ceremony to mark the shipment’s arrival, IJmuiden steel plant Hub Director Dook van den Boer said: “We are making great strides in improving our operational and environmental efficiency at IJmuiden. The high iron content of Northland Resources ore should contribute further to this in terms of energy consumption, and there will be logistical advantages because this new source is so close by.”
In response, Northland Resources Executive Chairman Anders Hvide said: "We are very pleased to join Tata Steel in this celebration to mark our first iron ore shipment. As a key customer, Tata Steel has been an essential partner in the build-up to Northland entering the market. We are proud that our first shipment carrying the premium product specified by our customer has been successfully delivered."
The contract between Tata Steel and Northland Resources envisages 6 million tonnes of Kaunisvaara iron ore of more than 69% iron content being delivered over a 7-year period. A second cargo for Tata Steel is due to start loading in late March or early April.
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About Tata Steel in Europe
The European operations of Tata Steel comprise Europe's second largest steel producer. With the main steelmaking operations in the UK and Netherlands, they supply steel and related services to the construction, automotive, packaging, lifting & excavating, energy & power, aerospace and other demanding markets worldwide. The combined Tata Steel group is one of the world’s largest steel producers, with an aggregate crude steel capacity of more than 28 million tonnes and approximately 80,000 employees across four continents.
About Northland Resources
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study (“DFS”) for its Hannukainen Iron Oxide Copper Gold (“IOCG”) project in Kolari, northern Finland and for the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.