Swedish construction and civil engineering firm Peab has won a SEK400m ($59m) contract from Northland Resources to expand Fagernes terminal at the port of Narvik in Norway.

Under the deal, Peab will build a quay, a heated, unloading facility for the rail wagons and a storage building and a ship loader.

Construction work on the terminal has already begun and is scheduled to be completed in April next year.

Northland Resources had received permission on 1 December, 2011 to build a new iron ore terminal in Narvik capable of loading vessels of up to 180,000 tonnes.

In addition, Peab is responsible for the construction of the transload terminal at Pitkajarvi, where pre-development has already started and will also manage trucking operation from Kaunisvaara to the Pitkajarvi terminal.

In Pitkäjärvi ore will be loaded onto trains for transportation at Malmbanan to Narvik for Northland.

Turnover for 2013-2021 is expected to be around SEK500m ($74m) per annum.

For the last two years the company has been working with Northland at the mine in Kaunisvaara, with responsibility for removal of overburden, logistics and construction of a concentrator plant.

Under a separate deal, Northland has also finalised the agreements with its logistical partners Peab, Savage and Grieg, which will ensure delivery of iron ore concentrate through the Port of Narvik starting from 2013.

Northland’s high grade iron ore concentrate, will be transported by truck 150km on public roads, before reloading to rail wagons at Pitkajarvi.

The trucks will be allowed to carry up to 60t at the beginning on the public road but, the Swedish Transport Administration (STA) is expected to grant Northland dispensation for 90t tonne trucks.