TIDMBEM
Beowulf Mining PLC
14 September 2021
14 September 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Letter to Minister Baylan
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, has sent a letter from its CEO, Kurt Budge, to
Sweden's Minister of Enterprise and Innovation, Ibrahim Baylan,
concerning the status of Beowulf's Kallak application.
The letter is reproduced below:
CEO's letter to the Minister:
London 2021.09.13
Statsrådet Ibrahim Baylan
Näringsdepartementet
Minister,
Jokkmokk Iron Mines AB, Kallak nr 1, Jokkmokks kommun,
Norrbottens län - Application for an Exploitation Concession
I write to you to request a meeting to discuss the development
of the Kallak Iron Ore Project ("Kallak").
Previously, you have said that a decision on Kallak will be made
once UNESCO comments are received, and now that is the case, it
appears you have everything you need to decide.
With your announced retirement last week, you can surely
appreciate that the prospect of engaging with a third Minister over
6 years is of great concern to me.
In September 2017, your predecessor Mikael Damberg said that
Swedish law is enough for testing the Kallak application and that
the permitting process should be "by the book".
With the Concluding Statement, submitted to the Government by
the Company's lawyers in November 2019, we robustly demonstrated
that under judicial review the Company's application would satisfy
all requirements for being granted a Concession. Only for that
Statement to be met by silence and inaction on the part of the
Government.
It is almost 2 years since you wrote to me, in September 2019,
explaining that my request for a meeting at that time "concerns a
forthcoming Government decision - a dossier that is currently under
preparation" and for those reasons the Government was unable to
meet or comment with regard to its "ongoing review".
It is nearly 10 months since The Constitutional Committee
("KU"), in its review of the Government's handling of the Company's
application for an Exploitation Concession for Kallak, made the
following statement (translation):
"KU has examined the application for a processing concession for
Kallak. In the Government case, no visible administrative measures
were implemented for almost three years. This means a delay that is
not acceptable, according to KU.
It also appears that the applicant has on several occasions
asked the Ministry of Trade and Industry for a meeting. The
Ministry has then stated that this is not possible because the
issue concerns a forthcoming Government decision and is a matter
under consideration.
KU notes that the Ministry management's statement does not seem
to be in line with what the Prime Minister has stated. The
Government Offices thus seem to lack a common approach to the
possibility for parties in administrative matters to have a meeting
with the responsible ministry."
It is 18 months since we both attended the Mining Nordic Day in
Toronto in early March 2020, at which event you saved your biggest
welcome for investors. I reminded you that Beowulf has been
invested in Sweden and working on Kallak since 2006. You also said
that I was welcome to do business in Sweden.
It continues to be the case, that Beowulf is unable to do
business in Sweden, because we cannot get a decision on Kallak and
play our part in the Country's sustainable mining future.
Fossil-free steel making in Sweden is in the ascendency. Yet
when it comes to permitting, there is no visible understanding
exhibited by authorities or the Government that steel plants need
sustainably produced high quality iron ore, like Kallak's
market-leading 71.5 per cent magnetite iron concentrate.
Jokkmokk desperately needs investment and jobs. Kallak will
bring billions of SEK in investment and hundreds of jobs to the
municipality that will keep people employed and support families
for decades.
The application you have on your desk is for Kallak North. Yet
the Company has continued to invest, explore and assess the
potential in the Kallak area, and, in May 2021, with our licences
Kallak South and Parkijaure, we upgraded the global Mineral
Resource Estimate showing the potential for up to 389 million
tonnes of iron ore mineralisation that could support mining for
30-40 years. More than doubling the current estimated life of
Kallak North.
As with Kiruna or Aitik, the full potential of any mining
development is not presented with the first application. Mines last
longer than first envisaged, workers hold jobs for longer, taxes
get paid for longer, municipalities like Jokkmokk recover and
thrive, and minerals and metals get produced under the right
conditions.
Investors in capital projects across sectors need to see
transparency and predictability in permitting processes, which you
have spoken of and which define competitive jurisdictions. Yet it
appears you will leave office before the reviews you initiated have
concluded, or any action taken to resolve the issues that have
impeded business during the last 3 years.
In the case of Kallak, you now have the chance, before leaving
office, to make a final decision that will make it possible for the
Company to take the project forward in partnership with the
community in Jokkmokk.
Yours sincerely,
Kurt Budge
Chief Executive Officer, Beowulf Mining plc
Director, Jokkmokk Iron Mines AB
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 7583
Officer 8304
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill Tel: +44 (0) 20 3470
/ Adam Cowl 0470
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
forecast .
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM market of
the London Stock Exchange and the Spotlight Exchange in Sweden.
Beowulf's purpose to be a responsible and innovative company
that creates value for our shareholders, wider society and the
environment, through sustainably producing critical raw materials,
which includes iron ore, graphite and base metals, needed for the
transition to a Green Economy and to address the Climate
Emergency.
The Company's asset portfolio is diversified by commodity,
geography and the development stage of its various projects.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden. A potential 389 million tonne resource which
can produce a 'market leading' concentrate of 71.5% iron content
and is a potential source of supply for fossil-free steel
production in Sweden for decades to come.
Fennoscandian Resources ("Fennoscandian"), a wholly-owned
subsidiary, is pursuing a strategy to develop a resource and
production base of graphite that can provide security of supply and
contribute to Finland's ambitions of achieving battery
manufacturing self-sufficiency, focusing on both natural flake
graphite production and a Circular Economy/recycling strategy to
produce high-value graphite products. The Company is also
developing its knowledge in processing and manufacturing
value-added graphite products, including anode material for
lithium-ion batteries.
Since Fennoscandian was acquired by Beowulf in January 2016, the
Company has invested approximately EUR2.2 million in graphite
exploration, resource development, metallurgical testwork and the
assessment of market applications for graphite supplied from its
Aitolampi project, including lithium-ion battery applications.
Fennoscandian has recently signed a Memorandum of Understanding
("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU
enables Fennoscandian to build its downstream capability,
collaborating with a strong and innovative technology/processing
partner, and for EAMPL to firmly establish itself in Finland, as a
market-entry point for supplying pre-cursor anode material into
Europe. The MoU addresses the development of a strategic processing
hub for both natural flake and recycled graphite to be located in
Finland.
In addition, a Scoping Study contract for the Aitolampi graphite
project has been awarded to AFRY Finland Oy. The purpose of the
Scoping Study is to verify the robustness of the work completed by
Fennoscandian, and to provide a roadmap for the next project
development stage, most likely a Pre-feasibility Study. The output
of the Scoping Study will enable Fennoscandian to share information
on the Aitolampi project and communicate with the local community
and other important stakeholders.
In Kosovo, the Company owns approximately 4 9 . 4 % of Vardar
Minerals ("Vardar"), which is focus on exploration in the Tethyan
Belt, a major orogenic metallogenic province for gold and base
metals. Vardar is delivering exciting results for its Mitrovica
licence which has several exploration targets, including lead,
zinc, copper and gold. It also has the Viti licence which is
showing potential for copper-gold porphyry mineralisation. With
Beowulf's support, Vardar is focused on making a discovery.
Kallak is the foundation asset of the Company, but with Vardar
and Fennoscandian, the Company has many opportunities to grow, each
business area displaying strong prospects.
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END
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