TIDMBEM
RNS Number : 6182K
Beowulf Mining PLC
23 September 2016
23 September 2016
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak North Exploitation Concession Application Update
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration
and development company, focused on the Kallak magnetite iron ore
project and the Åtvidaberg polymetallic exploration licence in
Sweden, and its graphite portfolio in Finland, is pleased to
provide an update on the application process for Kallak North.
On the 21 September 2016, the Company submitted a letter to the
Mining Inspectorate of Sweden, revising its application boundary to
encompass both the Concession Area, delineated by the Kallak North
orebody, and the activities necessary to support a modern and
sustainable mining operation.
The revised boundary takes into account the judgement made by
the Supreme Administrative Court of Sweden in the Norra Kärr case,
which stated that activities associated with a mining operation,
but outside of the previously considered Concession Area, need to
be studied as part of an application for an Exploitation
Concession.
All the activities associated with a mine at Kallak, and their
environmental effects, have been comprehensively studied as part of
the Environmental Impact Assessment ("EIA") for the project. The
EIA has also been reviewed in full by the County Administrative
Board ("CAB"), during the period from April 2013 to October
2014.
In the letter, we have reaffirmed the commitment we made back in
November 2014, in response to the concerns raised by the CAB in
October 2014 about a specific transport corridor under
consideration, to eliminate the transport corridor that passes in a
north/north-easterly direction through the Jelka-Rimakåbbå Natura
2000 area.
Kurt Budge, CEO, commented:
"We have been proactive in addressing what we believe are the
matters raised by the Norra K rr case, to facilitate the Mining
Inspectorate's further review of the Company's application.
"We have always maintained that we have carried out all the
necessary work to get an Exploitation Concession awarded. In 2015,
and before the Norra K rr judgement, this was validated by gaining
the support of the CAB and the recommendation of the Mining
Inspectorate.
"Before the Norra K rr judgement, it was working practice in
Sweden to limit decision criteria for an Exploitation Concession to
the Concession Area, even though the EIA studied all the activities
necessary to support a mining operation. Yet, you can't reap the
economic benefits that a Concession Area can deliver, without
having the required activities to support a mining operation.
"We have invested in Jokkmokk, we have established a business,
created value and, most importantly, we have taken no shortcuts in
the preparation of our application for an Exploitation
Concession.
"I was in Luleå in early September and read in the newspaper of
the loss of 40 jobs in Jokkmokk, being equivalent, in effect, to
the loss of 7,000 jobs in Stockholm. Kallak has the potential to
create 250 long term jobs, and we have a vision of Kallak as the
catalyst for establishing a diverse, thriving and sustainable
economy in Jokkmokk, long after mining has finished.
"Our approach throughout my time with the Company, has been to
show our desire to become a local partner and, as we advance the
project, deliver the responsible development of Kallak, sharing our
plans and ideas with the community. Permitting delays have hindered
our efforts, but we have demonstrated our firm commitment and begun
to establish important relationships for the future.
"Now that we have made this submission, we will be asking for
transparency on timeline and process to a decision being made, and
will update shareholders in due course. I am optimistic that we
remain on course for a positive decision."
Kallak Project Summary
-- The Company has defined a high quality resource at Kallak,
including an Indicated Resource of 118.5 million tonnes ("Mt") at
27.5 per cent iron and an Inferred Resource of 33.8Mt at 26.2 per
cent iron (JORC, 2012 edition), plus an exploration target of
90-100Mt at 22-30 per cent iron.
The exploration target represents potential ore, specifically in
the gap between the northern and southern ends of Kallak South, and
below the pit shells modelled for the resource statement. The 2014
drilling programme for Kallak South focused on defining the ends of
the Kallak South orebody. The geophysical magnetic signature of
mineralisation, evidence of the presence of magnetite, extends
through the gap giving confidence for an exploration target, but
insufficient drilling precludes any additional resource
classification.
The Kallak North orebody remains open at depth and to the
north.
-- On 8 June 2015, the Company announced testwork results
showing that a market-leading 'super' high grade magnetite
concentrate, with over 71 per cent iron content and low levels of
deleterious elements (silica, alumina, phosphorous and sulphur) had
been produced.
The 'super' high grade and purity of the magnetite concentrate
produced are valuable attributes for key target markets: pellets;
Direct Reduction Iron ("DRI") facilities in Europe and the Middle
East; and in chemical industry applications, with higher quality
iron units benefiting manufacturing productivity with improved
economy, and high purity delivering environmental benefits.
-- In February 2013, Kallak was designated as an Area of
National Interest ("ANI") for minerals by the Swedish Geological
Society, affording it protection against competing land uses and
measures that may hinder future potential mineral extraction.
Exploitation Concession Recap
-- On 1 July 2016, the Government of Sweden asked the Mining
Inspectorate of Sweden to review the Company's application for an
Exploitation Concession in the context of the recent Supreme
Administrative Court judgement in the case of the Norra K rr
project.
-- On 9 October 2015, the Mining Inspectorate of Sweden wrote to
the Government of Sweden and recommended that the Exploitation
Concession for Kallak North be granted.
The recommendation was delivered in response to the Department
of Enterprise and Innovation's invitation for the Mining
Inspectorate to give its views on the findings made by the CAB on
Kallak North, as published in the CAB's announcement dated 7 July
2015.
-- On 7 July 2015, the CAB published their response to the
Government of Sweden's request for comments on the national
economic assessment of Kallak North.
The CAB stated in their response that mining is economically
relevant, and that the Kallak North project generates economic
benefits at local, regional and national levels, including direct
and indirect jobs, tax revenues, and more broadly across mining
equipment and services sectors in Sweden.
The CAB stated that there are no conflicts within the Concession
area where national interests are considered, as the Concession
area is designated as an ANI for minerals.
The CAB's announcement also looked to the future, directing the
Company towards working with communities that could be affected by
the development of a mining project, including Sami reindeer
herding communities. This is work that the Company has already
begun, with regular interactions and meetings with key stakeholders
in and around Jokkmokk, including ongoing communications with the
Chairmen of the Jåhkågasska and Sirges Sami reindeer herding
communities.
-- Jokkmokk Kommun's independent socio-economic study on Kallak
shows that a mining development will create direct and indirect
jobs, increase tax revenues and slow down population decline,
demonstrating that mining at Kallak can provide a much needed
economic stimulus for the region.
-- The Company has demonstrated its commitment to Jokkmokk's
economic future as a direct investor in the mining project, with
over SEK 71 million having been invested to date, and through its
partnership with the landowners' association, Jokkmokks Allmänning,
to provide financial support for the development of small and
medium sized enterprises in the wider community.
Kallak Environmental Impact Assessment ("EIA")
-- The EIA, which was submitted as part of the Exploitation
Concession application by Beowulf's 100 per cent owned Swedish
subsidiary, Jokkmokk Iron Mines AB ("JIMAB") in April 2013, and
later supplemented in April 2014, has comprehensively studied all
aspects of a future mining operation and their associated
environmental impacts, with a detailed technical description and
site plan.
-- The EIA includes detailed studies into local reindeer herding
activities, and precautionary, protective and compensatory
frameworks have been established. These frameworks will be further
developed into management plans, in consultation with concerned
Sami reindeer herding communities, as the project is advanced.
-- The supplementary EIA application was a revised and expanded
version of the original submission made in April 2013, following
the CAB's request in late November 2013 for further information and
clarification on certain aspects of the EIA.
-- JIMAB added certain supplements to the EIA, along with
further technical description and commentary. The enhanced report
comprised 164 pages, including various figures and tables, with an
additional 16 appendices of more than 200 pages in length covering
various technical and specialist aspects based on work performed by
the Company's expert team of Swedish consultants.
-- The EIA was supplemented in the following principal areas:
o The reindeer husbandry section was complemented by further
analysis commissioned from consultants Swedish Geological AB. It
was also supplemented and revised based on certain comments and
information received from the local Sami reindeer herding
communities.
o Additional investigations regarding safety aspects for
hydroelectric power dams were conducted by Ramboll Sweden AB.
o Questions raised regarding security issues surrounding any
tailings dams for the project were further investigated and
addressed by Tailings Consultants Scandinavia AB.
o Various comments received on the socio-economic aspects were
responded to by Luleå University of Technology.
o Additional investigations concerning local hunting and fishing
activities and specialist environmental aspects, including water
ecology and water chemistry, were conducted by Pelagia Miljökonsult
AB based in Umeå.
o Additional information was gathered regarding Areas of
National Interest and other interests of importance in respect of
general water management and military defence aspects.
o Additional studies and inventories on the existing natural
water sources in the project area were compiled by Hifab
International AB, together with reports on dust and air quality
issues.
o Further information was obtained on the Laponia World Heritage
site located more than 40 kilometres away from the Kallak North
deposit, as well as on the general tourism industry in the Jokkmokk
region sourced from the Destination Jokkmokk organisation.
-- The methodologies utilised in the enhanced EIA report were
generally developed and conducted in accordance with the comments
received from the CAB, and reflected the feedback from a
constructive meeting held with representatives of the Norrbotten
County authorities in March 2014.
Competent Person
The mineral resources for the Kallak North and Kallak South iron
ore deposit have been prepared and categorised for reporting
purposes by Mr. Thomas Lindholm, of GeoVista AB, Fellow of the
MAusIMM, following the guidelines of the JORC Code, 2012 edition.
Mr. Lindholm is qualified to be a Competent Person as defined by
the JORC Code on the basis of training and experience in the
exploration, mining and estimation of mineral resources of ferrous
deposits and by his membership in a recognized professional
association. Mr. Lindholm consents to the inclusion in this
announcement of resource statement information in the form and
context in which it appears.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
Phil Davies / David Porter Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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