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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	NFE
Latest Price:	0.82 (0.00%)
52-week High:	2.02
52-week Low:	0.63
Market Cap:	277.27M

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Northern Iron Limited

Northern Iron is an Australian company headquartered in Perth which was formed to acquire the Sydvaranger Iron Project in northern Norway. Northern Iron intends to redevelop the Sydvaranger Iron Project to commence production of magnetite iron concentrate for supply into the European market.

Northern Iron intends to redevelop the Sydvaranger Iron Project to commence production of magnetite iron concentrate for supply into the European market. The Sydvaranger Iron Project encompasses three magnetite deposits with JORC compliant resources (Bjørnevatn, Fisketind Øst, Kjellmannsåsen).

Northern Iron scores offtake agreement with Tata Steel - shares rise again

Tuesday, January 06, 2009 by Proactive Investors

Northern Iron (ASX:NFE) has struck an offtake agreement with Corus, a subsidiary of Tata Steel Group to sell six million tonnes of iron concentrate from the company's Sydvaranger Iron Project in Norway, with an option to sell an additional 2.25 million tonnes. Tata Steel is the world's sixth largest steel producer.

The company's total project inventory in Norway is 206 million tonnes at 32 per cent iron.

The offtake agreement with Corus is for an initial term of 5 years from 1 July 2009 with contracted sales of 6Mt of concentrate representing approximately 45% of the planned base case production over the contract term.

Separately, Northern Mining has entered into an Memorandum of Understanding (MOU) with a third party to sell the remainder of the planned base case production. The compay aims to enter long term Freight on Board (FOB) sales agreements directly with pellet producers in Europe and the Middle East.

The company's strategy is to leverage low levels off deleterious elements (including phosporus and silica) to move production to a lower silica product suitable for Direct Reduction pellet production. Significantly, the Sydvaranger mine has historically produced a range of products with silica levels of 0.5% using existing equipment on site.

Northern Mining has indicated it is on schedule for commissioning of Sydvaranger in June 2009 with commercial production in July 2009. The company had cash on hand at Novemember 2008 (end) of $89.4 million.

Northern Mining was last trading at $1.02 with over one million shares traded.

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