TIDMBEM
RNS Number : 3024U
Beowulf Mining PLC
02 December 2021
2 December 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Letter to Minister of Enterprise and Innovation
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, Karl-Petter
Thorwaldsson, following positive comments by the new Swedish Prime
Minister about the need for more mines in Sweden and Minister
Thorwaldsson about 'taking action' in the matter of Kallak.
The letter is reproduced below:
CEO's letter to the Minister of Enterprise and Innovation:
London 2021.12.01
Statsrådet Mr. Thorwaldsson
Näringsdepartementet
Minister,
Jokkmokk Iron Mines AB, Kallak nr 1, Jokkmokks kommun,
Norrbottens län - Application for an Exploitation Concession
May I congratulate you on your appointment as Minister of
Enterprise and Innovation and thank you for the immediate attention
that you have given to the Kallak case.
The recent political changes in the composition of the
Government and the public statements by you and the Prime Minister
have caused excitement amongst Beowulf shareholders.
Beowulf is a public company listed in Stockholm since 2008 and
is over 73 per cent owned by Nordic investors. The balance of
ownership and trading in the Company's shares takes place in
London.
If a decision is made, I request that the Company is notified
when markets are closed, such that we can prepare an announcement
and ensure all market participants are in possession of the full
facts when trading resumes.
The first exploration licence at Kallak was granted in 2006 and
the Company's 100 per cent owned subsidiary, Jokkmokk Iron Mines,
has been permitted to invest over SEK 80 million and define iron
ore mineralisation of approximately 389 million tonnes. This
tonnage includes Kallak North, for which we submitted an
application for an Exploitation Concession in 2013, Kallak South
and our Parkijaure exploration licences. This year, we have also
been awarded an additional exploration licence near Kallak,
Agåsjiegge nr 3, which the Geological Survey of Sweden ("SGU")
estimates contains 75 million tonnes of magnetite iron ore
mineralisation.
Your predecessor Mr Baylan often spoke of the complexity of the
Kallak case. It is the handling of the case that has exacerbated
perceived complexity, in no small part the inconsistent role played
by Länsstyrelsen Norrbotten. All the evidence in Sweden is that
industrial activity and reindeer herding coexist. This includes the
mining sector, where despite differences, agreements are made and
all stakeholders benefit.
Since I joined Beowulf in late 2014, the Company has addressed
all outstanding issues and been as proactive as we can be in
demonstrating that our application is good and that we have done
all required to get the Concession. Otherwise, what is the point of
Bergsstaten, part of SGU a Government Office, in October 2015,
recommending to the Government that the Concession be awarded for
Kallak and continuing to issue the Company with exploration
licences.
If now, after 15 years of investment, defining a significant
iron ore resource, from which a market-leading iron concentrate can
be produced, which can ensure the integrity of a developing
fossil-free supply chain for steelmaking in Norrbotten, and
creating a business opportunity that can positively transform a
rural community, that approval is not given, then this would be a
damning message to send to investors.
Mr Baylan presented in March 2020 at the Mining Nordic Day in
Toronto; at which event he saved his biggest welcome for investors.
I reminded him that Beowulf has been invested in Sweden and working
on Kallak since 2006. He 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.
Your predecessors have made many false promises. Mr Baylan said
that a decision on Kallak would be made once UNESCO comments are
received, and now that is the case, he has left you to decide.
In September 2017, Mr 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 more than 2 years since Mr Baylan 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 over a year 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."
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, and that
competitive sources of supply, alternatives to the state iron ore
company LKAB, are positive dynamics for developers and
investors.
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 our licences indicate 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 the
Government has spoken of and which define competitive
jurisdictions, yet no action has been taken to effect any
change.
I appreciate you will be a busy man and most likely unavailable
for a meeting, but please do not hesitate to contact me if you have
any questions regarding the Kallak case.
Yours sincerely,
Kurt Budge
Chief Executive Officer, Beowulf Mining plc
Director, Jokkmokk Iron Mines AB
Copies:
Sven Otto Littorin, Chairman, Beowulf Mining plc
Christopher Davies, Non-executive Director, Beowulf Mining
plc
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 from which testwork has produced a 'market
leading' concentrate of 71.5% iron content. Across the Company's
exploration licences, 389 million tonnes of iron ore mineralisation
has been estimated, which represents a potential source of supply
for fossil-free steel production in Norrbotten for decades to
come.
Grafintec (previously Fennoscandian Resources), a wholly-owned
subsidiary, through its Memorandum of Understanding ("MoU") with
Epsilon Advance Materials Limited ("EAMPL") is enhancing its
position within the Finnish battery ecosystem, collaborating with a
strong and innovative technology/processing partner, with plans to
develop an anode materials plant in Finland to supply the growing
lithium-ion battery sector.
In Kosovo, the Company owns approximately 49.4% of Vardar
Minerals ("Vardar"), which is focused 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 Grafintec, the Company has many opportunities to grow, each
business area displaying strong prospects.
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END
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