Northland Resources has signed a letter of intent with civil and construction engineering company Peab to form a joint venture to manage transportation of iron ore from Northland’s Kaunisvaara mine in Sweden.

The JV company will manage the entire logistical chain, covering the loading of concentrate on to trucks for transport to the Svappavaara terminal, where the goods will be transferred on to rail cars.

The JV will also operate the trains from Svappavaara to the port of Narvik, including the storage of goods in Narvik and the loading of the ships.

The Kaunisvaara project exploits magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden.

The new company is expected to be operational by the end of 2012, in order to coincide with the start-up of Kaunisvaara production.