Savage and Northland Resources S.A. have entered into an agreement for Savage to manage the supply chain logistics from the Northland iron ore mine in Kaunisvaara, Sweden to the Port of Narvik in Norway. This supply chain will handle a planned daily volume of 14,000 metric tons (mt) of concentrated iron ore. The ore will travel 150 km by truck, to be transloaded into railcars for a 225 km trip to the port where it will be loaded onto ships for export.
The Northland mine of Tapuli is slated to begin output of iron ore volumes in the first quarter of 2013. Savage has already begun to support the operation with a management team located in Lulea. Savage will be responsible for the complete supply chain of the ore, including the coordination, management and integration of the transportation parties; Peab AB will provide transportation by truck, and Grieg Logistics AS will provide operation services at the port.
Savage will also operate the 225 km long train transportation between the truck transload terminal at Pitkäjärvi and the Port of Narvik. In addition to day to day management, and the rail transportation operations, Savage will deploy technology that allows Northland real-time visibility into the ore inventory, location and available truck and rail capacity.