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Metso has signed a major service contract with Northland Resources AB, consisting of a six-year service, maintenance and inspection program for the Kaunisvaara iron ore processing plant, located in northern Sweden. The contract complements previous equipment and mill lining services order, announced in 2011. The total value of the order is EUR 73 million, including the previously signed contract worth EUR 19 million.
The customized Life-Cycle Services program includes technical assistance, maintenance and shutdown planning, monthly audits, annual inspections, mechanical spare and wear parts and essential tools for all equipment used in the Tapuli iron ore process line. Metso’s on-site resources will also conduct inspections to maximize plant availability.
“This services contract with Metso is important for us as it maximizes the up time of the Tapuli process line,” says Peter Pernlöf, Chief Operations Officer, Northland Resources AB. “It is a cost per ton contract and provides us a good view of future plant expenditure over an extended period of time as well as on the total investment involved.”
“The opportunity to partner with Northland Resources with a new life-cycle service contract will further strengthen our position as a local services partner for our mining customers in the northern part of Sweden,” says João Ney Colagrossi, President of Services business line, Mining and Construction, Metso.
The contract period will commence immediately, and the actual service will commence when the Tapuli process line starts to process iron ore in November 2012. The order is included partly in Metso Mining and Construction’s 2011 and partly in the first quarter 2012 orders received. The share of each year’s contract value will be included in the corresponding year’s order backlog.
Metso to strengthen local customer service in northern Sweden
Metso will further develop its strong local services offering for mining customers and strengthen its customer service in northern Sweden. Today, Metso has a strong and competent customer service organization in Gällivare, Kiruna and Luleå, in addition to this Metso will establish a service center in Pajala to support the new services contract with Northland Resources AB. The region holds major potential for Metso’s equipment and service business, as mining companies situated in northern Sweden are expanding their business and investing in new mining projects.
Northland Resources is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The company’s Kaunisvaara project will exploit two magnetite iron ore deposits in Sweden. The process is expected to yield a high-grade, high-quality magnetite iron concentrate.
