TIDMBEM
RNS Number : 7421X
Beowulf Mining PLC
24 February 2017
24 February 2017
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak North Exploitation Concession Update
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
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, announces that
further to the Company's announcement on 22 February 2017, the
Company has written to the Mining Inspectorate of Sweden.
The Company has stated that it does not agree with the Mining
Inspectorate on consulting with the Swedish National Heritage Board
(Riksantikvarieämbetet, "RÅA") and the Swedish Environmental
Protection Agency (Naturvårdsverket, "NV"), as both these agencies
have already reviewed the Company's application for an Exploitation
Concession for Kallak North and provided comments.
The Company has stated that it is for the County Administrative
Board ("CAB") for the County of Norrbotten to answer the Mining
Inspectorate's questions and to give an opinion on the Company's
application. The CAB has stated on more than one occasion that the
Company's Environmental Impact Assessment ("EIA") is sufficient for
an assessment, and in July 2015, the CAB detailed a robust economic
case for Kallak.
The Company has summarised arguments that support its case for
the award of a Concession, but will not be making any further
detailed submission before the Mining Inspectorate consults with
RÅA and NV.
The Company believes that it is not reasonable to presume that a
mining operation at Kallak will have an adverse impact on the World
Heritage Status of Laponia; with Laponia almost 1 million hectares,
and Kallak approximately one thousandth of its size. The assessment
by third parties has been erroneous, at a very basic level, with
the ICOMOS and IUCN Technical Review, dated February 2016, claiming
Kallak to be 80 km(2) . This is not the case. The entire area for
Kallak is approximately 13.6 km(2) , one sixth of what ICOMOS and
IUCN stated in their report. The Company maintains that its EIA is
comprehensive and that the 'zone of influence' of any mining
operation at Kallak does not extend 33.8 kilometres to the closest
point of Laponia.
On 2 December 2016, the Company provided the CAB with a paper on
the interaction of Kallak and Laponia, matters regarding Laponia's
World Heritage Status and Heritage Impact Assessments. The purpose
of the paper was to address matters raised by interested parties
with respect to the Company's application, since the CAB's
statement in October 2014. The paper directed the CAB to where
matters raised are addressed in the Company's EIA, where the
Company believes matters should be addressed under environmental
permitting, and where the Company believes matters fall outside of
the prescribed process for being awarded an Exploitation
Concession.
With regards to the interaction between mining and reindeer
herding, in November 2014 the Company eliminated the
Jelka-Rimakåbbå transport route from future plans, responding to
the CAB's concerns, and the Company's EIA contains established
preventative, precautionary and compensatory frameworks that could
be developed into management plans, in consultation with the
reindeer herding communities affected by mining operations. The
Company is committed to the responsible development of Kallak, and
partnering with the local community, including the Sami reindeer
herding communities.
While the Company remains hopeful of an award of the
Exploitation Concession, there can be no guarantee if, or when, the
Concession might be awarded.
Kurt Budge, CEO, commented:
"It's reassuring that the Mining Inspectorate is demonstrating
some urgency with regards to handling our application, but the
level of frustration now felt, after submitting the application
nearly four years ago, and with all the twists and turns since I
became involved, is palpable.
"In 2015, we gained the support of the CAB for our application
and the recommendation of the Mining Inspectorate to the Government
of Sweden that the Exploitation Concession be awarded. Since 2015,
there have been no material changes to the application which the
CAB supported. The Mining Act and the Environment Code are
unchanged, and so is the prescribed review process. Yet, we are
still trying to get an Exploitation Concession, after investing
SEK72 million in the project and creating real value.
"In December 2016, we presented a reasoned case to the CAB,
demonstrating that Kallak is not a threat to Laponia's World
Heritage Status, considering the distance between them, relative
size of both, and the evidence that shows industry and reindeer
herding can exist side by side.
"We continue to place great emphasis on gaining local support.
My trip to Jokkmokk this week, presenting the Company's vision for
Kallak, a modern and sustainable mining operation, a centre for
innovation, that has the potential to transform the economy and
future of Jokkmokk, was well received by local entrepreneurs,
business people, the Kommun and landowners' association. I will be
back in Jokkmokk in a just over a week to present to more groups,
and now feel that significant support is building behind Kallak,
because of its importance to the community."
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter/Craig Francis 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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