Northland Resources has signed a letter of intent with Metso Mining and Construction Technology, as part of which it will provide long-lead items for the Tapuli process line and basic engineering at the Kaunisvaara project’s process plant system in Northern Sweden.

The initial equipment long lead-time order includes a primary gyratory crusher, an autogenous grinding mill and three vertical grinding mills due for delivery in the second quarter of 2012.

The plant is expected to produce 12 million tons of dry iron ore and five million tons of iron ore concentrate, once the construction is completed.

The contract will be finalised within a month.