TIDMBEM
RNS Number : 4014I
Beowulf Mining PLC
19 June 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Kurt Budge, Chief Executive Officer.
19 June 2017
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Exploitation Concession 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, provides an update
on the Kallak North Exploitation Concession application
process.
On 16 June 2017, the County Administrative Board ("CAB") for the
County of Norrbotten responded to the Mining Inspectorate. In its
response, the CAB has suggested more information needs to be
provided, to further assess the potential impact of a mining
operation at Kallak on Laponia, it has not said what information
needs to be provided. The CAB has made no request to the Company at
any time to provide further information, nor has it provided
feedback on the Company's submission to the CAB in December 2016
and the Company's Heritage Impact Assessment ("HIA") prepared in
April 2017 and submitted to the Mining Inspectorate.
The Company's submission in December 2016 analysed the formal
statements made since October 2014, by different parties involved
in the application process. The objective of the analysis was to
demonstrate that the Company's application has satisfied all the
requirements of Swedish law, and that the work done by the Company,
and the reviews by the CAB, to date, are in alignment with the
Supreme Administrative Court judgement in the Norra Kärr case.
On 27 March 2017, the Swedish National Heritage Board
(Riksantikvarieämbetet, "RAÄ") and the Swedish Environmental
Protection Agency (Naturvårdsverket, "NV") provided comments to the
Mining Inspectorate, acknowledging that Kallak does not directly
affect Laponia. While the Mining Inspectorate asked RAÄ and NV to
be specific in where the Company's Environmental Impact Assessment
("EIA") might be insufficient in detail, the agencies merely
suggested that the Company should provide more details, to describe
the possible indirect effects of a mining operation at Kallak on
Laponia, the interaction of mining and reindeer herding, and
matters related to transport.
On 28 April 2017, the Company submitted a HIA to the Mining
Inspectorate in response to the comments made by RAÄ and NV. The
analysis followed United Nations Educational, Scientific and
Cultural Organisation ("UNESCO") guidelines for conducting a HIA.
Typically, a HIA is not required with an application for an
Exploitation Concession, but the Company voluntarily produced one,
with the support of its expert Swedish technical team and Swedish
Advisory Board.
It is understood that RAÄ and NV have refused to provide further
comments to the CAB on the application, despite the CAB asking for
them.
On 1 October 2014, the CAB confirmed that the Company's EIA was
sufficient with respect to Chapters 3, 4 and 6 of the Environmental
Code and, on 7 July 2015, the CAB wrote to the Government of Sweden
indicating that the Company's application could be permissible with
respect to Chapters 3 and 4 of the Environmental Code. The CAB's
position must be interpreted as if the CAB has no objections to the
granting of an Exploitation Concession.
Kurt Budge, CEO, commented:
"The opportunity cost, time and resources, expended on this
application process, have not only been borne by the Company, but
also by the community in Jokkmokk. The continual delays and
inefficiency of the application process are unacceptable. Eight
months has been lost since the CAB received the Mining
Inspectorate's questions, and it has failed to provide any answers
or an opinion.
"In July 2015, the CAB wrote to the Government of Sweden
indicating that the Company's application could be permissible with
respect to Chapters 3 and 4 of the Environmental Code.
"The Company has been proactive in providing further analysis to
the CAB in December 2016 and a HIA in April 2017. The CAB has not
provided feedback on either document. Since I have been involved in
this process, the CAB has not requested any information, at any
time, from the Company.
"Laponia has been in existence since 1996. The guidelines for
the establishment of its boundary state that the protected area
should typically be so largely defined, that exploitations outside
the area should not be able to have a significant influence on the
core value of the world heritage status (Regeringens skrivelse
2001/02:171, Unescos världsarvskonvention och de svenska
världsarvsobjekten).
"Kallak is one thousandth of the size of Laponia, an area of
13.6 km(2) compared to Laponia's 940,000 km(2) . Kallak is
approximately 34 kilometres from eastern Laponia at the closest
point, and further away as Laponia extends to the north and
west.
"With regards to transport, the Company has stated that
solutions will be optimised during, and sensibly controlled by the
environmental permitting process, such that there should be no
significant effect on Laponia, and planning will involve other
parties, including Trafikverket and Inlandsbanan. Inlandsbanan has
its own ambitious growth plans and would welcome Beowulf as a
customer, as would the Port of Luleå.
"The Company has listened, and responded, to concerns raised
throughout the application process. This has been demonstrated by
the submission to the CAB in April 2013 of extensive supplementary
EIA studies, and, in November 2014, the Company eliminating the
Jelka-Rimakåbbå transport route from its plans, responding to the
CAB's concerns about the interaction of mining and reindeer
herding.
"I was in Jokkmokk and Luleå again last week, meeting senior
politicians, hearing of their support for the project, recognition
of its potential positive impact on Jokkmokk, Luleå and Norrbotten,
and acknowledging the failings in the application process.
"The Mining Inspectorate has been given a mandate by the
Government of Sweden to make a decision on our application. Our
application has met all the requirements of the prescribed process
and we should be awarded the Concession without further delay.
"We will provide further updates to shareholders in due
course."
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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