Beowulf Mining PLC - Letter to Business, Industry & Innovation Minister
("Beowulf" or the "Company")
Letter to the Minister for Business, Industry and Innovation, The Government of
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces that
The letter, sent yesterday, is below:
There is considerable stock market anticipation as to your response this Wednesday to the Parliamentary Question put to you by Mr Lars Hjälmered.
I politely remind you that
Since you, and I, attended the Mining Nordic Day in
In May 2019, the State Secretary said to Göran Färm, Beowulf's Chairman, and me, in a face to face meeting in
What is often overlooked in the debate around mining projects is the risk capital needed to develop a mine, the timeline for investment and the 'big picture' economic impact that a mining project, such as Kallak, can create.
The first exploration licence for Kallak was granted in 2006 and to date over
Bergsstaten, as part of the SGU, a Government Office, has seen the Company drill almost 28,000 metres, 131 drill holes, to define a potential 250 million tonnes of iron ore, which is an asset to
Bergsstaten recommended to the Government in October 2015, that the Concession for Kallak should be awarded, and last October awarded an Exploration Permit for Parkijaure nr 6, which covers approximately 1,000 hectares and lies immediately to the south of the Kallak deposits.
On the evidence, the authorities are happy for Beowulf to continue to invest in iron ore exploration, which in the context of LKAB's announcement, in
Beowulf has several thousand Swedish shareholders, who own over 67 per cent of the Company. They have witnessed the Government's unacceptable mishandling of the Kallak application and false promises; the opportunity cost of which is incalculable. They are demanding the Government be fully transparent now and remove all uncertainty as to when a decision on Kallak will be taken.
Beowulf is ready to play its part in
Chief Executive Officer
Kallak - 'Big Picture'
· In 2017, Copenhagen Economics produced a 'Big Picture' study for Kallak ("the Study" or "the Kallak Study"):
The Study built on the work carried out, by the Company and others, including the 2015 independent socio-economic study initiated by Jokkmokks Kommun, completed by consultants Ramböll, which in its findings concluded that a mining development at Kallak would create direct and indirect jobs, increase tax revenues and slow down population decline, and the 2010 study by the Economics Unit of Luleå
· Copenhagen Economics has previously reviewed the attractiveness of the Swedish mining sector on a number of parameters, including licensing and regulation, commissioned by the
· The Kallak Study demonstrated that the economic effect of Kallak is 'not just about a mine'. A mining project would economically transform Jokkmokk and support downstream investments and economic activity e.g. Inlandsbanan, Luleå Hamn,
· When it comes to Kallak's economic effect on Jokkmokk, the Study highlights were as follows:
· 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
· 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.
Kallak - Background
The Kallak iron ore deposit is located approximately 40 kilometres ("km") west of Jokkmokk in the County of Norrbotten,
The first exploration licence for Kallak was awarded by the Mining Inspectorate of
Testwork on Kallak ore has shown that a 'super' high grade magnetite concentrate can be produced, yielding over 71 per cent iron content, with low levels of deleterious elements, including phosphorous and sulphur, lending itself to pelletisation and consumption in Direct Reduction Iron ("DRI") facilities in
Competent Person Review
The information in this announcement has been reviewed by Mr.
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(Nominated Adviser & Broker)
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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 news service of the
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