TIDMBEM
RNS Number : 3959R
Beowulf Mining PLC
21 September 2017
21 September 2017
Beowulf Mining plc
("Beowulf" or the "Company")
Study of Kallak's Potential Economic Benefits
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
publish a study completed by Copenhagen Economics titled 'Kallak -
A real asset, and a real opportunity to transform Jokkmokk' (the
"Project").
The Project builds on the work carried out to date, by the
Company and others, including the 2015 independent socio-economic
study initiated by Jokkmokks Kommun, completed by consultants,
Ramböll. and the 2010 study by the Economics Unit of Luleå
University of Technology, 'Mining Investment and Regional
Development: A Scenario-based Assessment for Northern Sweden'. The
socio-economic study initiated by Jokkmokks Kommun concluded that,
a mining development at Kallak would create direct and indirect
jobs, increase tax revenues and slow down population decline.
A presentation by Copenhagen Economics on the Project can be
found on the Company's website:
http://beowulfmining.com/wp-content/uploads/2017/09/Copenhagen_Economics_Presentation_SEP2017.pdf
Highlights of the Project:
-- A mining operation at Kallak has the potential to create 250
direct jobs and over 300 indirect jobs in Jokkmokk, over the period
that a mine is in operation.
-- These jobs could be sustained over a period of 25 years or
more, if the Kallak South deposit is mined after the Kallak North
deposit, and further deposits at Parkijaure can be defined.
-- The Company will seek to establish a 'Task Force' with
Jokkmokks Kommun and local employment agencies, so that between now
and the start of operations, plans are developed and implemented to
make sure as many as possible jobs are available to people living
in Jokkmokk.
-- Kallak has the potential to generate SEK 1 billion in tax
revenues, considering the case where 70 per cent of the mine's
workforce are based locally, with annual tax revenues of SEK 40
million over a 25 years mine life.
-- These tax revenues would help to develop and sustain public
services and infrastructure in Jokkmokk, which are at risk due to a
lack of new investment and job creation in the community, a
declining population, and an ageing population.
Kurt Budge, CEO, commented:
"I am very pleased to have completed this Project with the
support of Copenhagen Economics.
"The north of Sweden is looking for investors and economic
development opportunities. Beowulf has invested over SEK72 million
in Kallak to date, and we have created a real opportunity, that has
the potential to transform Jokkmokk, giving it the thriving,
diversified and sustainable economy it seeks.
"As I heard a senior Government minister say at Almedalen this
year, "you only get development in rural areas, where you get
investment". Our SEK72 million investment in developing Kallak, the
potential of 550 long-term jobs in Jokkmokk and SEK 1 billion in
tax revenues, are aligned with that minister's statement, and are
numbers that should not be ignored.
"With this Project, we have tried to better articulate the
economic benefits, to Jokkmokk and Norrbotten, of a modern and
sustainable mining operation at Kallak - the 'Big Picture' - and
how it fits in with the objectives and ambitions of Swedish policy
and decision makers.
"We have explained our development philosophy of partnership and
collaboration, and extended an invitation to potential partners.
With this Project, and our forthcoming Scoping Study, we are
demonstrating our commitment to investing in, and taking Kallak
forward, in partnership with our stakeholders."
The Project
As well as revisiting the work done by Ramböll and LTU and
reminding stakeholders of Kallak's economic potential locally,
regionally, and nationally, the Project also details the Company's
philosophy on what needs to happen to ensure Kallak is a success,
and Jokkmokk maximises the benefits it receives.
The Project is an invitation to potential partners to join and
collaborate with the Company, such that synergies can be achieved,
strategic alliances formed, and Kallak's full potential can be
realised. Such commercial partners could include Vattenfall, as we
seek to electrify the mine and make it zero diesel/zero carbon,
Inlandsbanan (the inland railway operator) and the Port of Luleå,
both of whom have their own growth ambitions, require customers,
and a project like Kallak to support them.
Locally, we will be seeking to formalise a partnership with
Jokkmokks Kommun, local businesses, and representatives from all
interested parts of the community. A partnership organisation will
provide an effective forum through which the Company can share and
exchange its ideas and plans for the development of Kallak. The
organisation should develop terms of reference, objectives and
workplans that can be shared between partners, leading to the
eventual development of a modern and sustainable mining operation
at Kallak, which will sit in harmony with the environment and
community, and a revitalised Jokkmokk.
Given Copenhagen Economics' relevant expertise in the regional
mining sector, and previous work for the Swedish Agency for Growth
Policy Analysis, part of The Government of Sweden, it was an ideal
partner to work with the Company on this Project.
About Copenhagen Economics
Copenhagen Economics was established in 2000 and has offices in
Copenhagen, Stockholm, and Brussels. Its single expertise is
Economics.
The partnership has 75 employees, who either hold a Ph.D. or
M.Sc. in Economics, and who represent multiple nationalities:
Danish, Swedish, German, Finnish, Italian, Lithuanian, Romanian and
American.
Copenhagen Economics' areas of work include: Economic modelling
of local value creation, mapping and benchmarking of national
strongholds, Value Chain Analysis, impact evaluation of tax and
royalty Schemes, Policy and regulatory advisory, and transformation
of stakeholder engagement models.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
This information is provided by RNS
The company news service from the London Stock Exchange
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