TIDMBEM
RNS Number : 3734A
Beowulf Mining PLC
22 January 2024
22 January 2024
Beowulf Mining plc
("Beowulf" or the "Company")
Update on the Kallak Iron Ore Project
Beowulf (AIM: BEM; Spotlight: BEO), and its wholly owned Swedish
subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron"), are pleased to
provide an update to the ongoing Supreme Administrative Court (the
"Court") appeal process relating to the Kallak Iron Ore Project
("Kallak") and to acknowledge the statements presented to the Court
by the Government endorsing their original decision to award the
Exploitation Concession for Kallak. The Court process is an appeal
against the Government's decision to award an Exploitation
Concession for Kallak and neither Beowulf, nor its wholly owned
subsidiary Jokkmokk Iron Mines AB, are parties to this legal
action.
Government Statement
On 18 January 2024 the Government made a formal and
comprehensive statement to the Court, endorsing the original
decision to award the Exploitation Concession and further
emphasising its support for the project stating that the Kallak
Project is of national interest:
"It has been argued in the case that the Government incorrectly
assessed the deposit as being of national interest under Chapter 3
Section 7 of the Environmental Code. In this regard, the Government
can state the following. The deposit is classified as Sweden's
largest known undeveloped deposit of so-called quartz-banded iron
ore. At present there are only a few known deposits of iron ore
left in Sweden that can be classified as economically exploitable.
Sweden is today a large and important mining nation, and the
Swedish mining and mineral industry is of great importance to
Sweden nationally, in the regional and local perspective and beyond
Sweden's borders. While Sweden produces 93 per cent of all iron ore
in the EU, the EU is still 70 per cent dependent on imports of iron
and steel. Iron ore and steel are also needed for the green
transition. At the same time, recent developments and Russia's
full-scale invasion of Ukraine have affected the supply chains for
the metal, as both Russia and Ukraine are major producers of iron
ore and also of refined products. From a total defence perspective,
it is important that Sweden has commercial goods and iron of the
kind found in Kallak. Against this background, the Government
considers, in accordance with the assessment made in the Government
Decision, that the area containing the deposit in Kallak is of
national interest."
Chronology of Events
25 April 2013 Application for Exploitation Concession submitted
24 April 2014 Updated application for Exploitation Concession submitted
13 February 2015 The Mining Inspectorate of Sweden referred the
decision regarding the Exploitation Concession for Kallak North to
the Swedish Government
2015 to 2022 Application reviewed by different Government
agencies and UNESCO
22 March 2022 Exploitation Concession granted
Spring of 2022 Applications sent to the Court for a legal review
of the Government's decision
26 January 2023 The Court set a date of 19 and 20 September 2023
for an oral hearing
19 & 20 September 2023 Oral hearing held in Stockholm
25 September 2023 Further submission sent to the Court by the
applicants and the Court requests a response from the
Government
18 January 2024 Government provides response endorsing original
decision to award the Exploitation Concession
Detail
In April 2013 an initial application for the Exploitation
Concession covering the northern portion of the Kallak Project,
Kallak North was submitted. Following a request from the County
Administrative Board of Norrbotten ("CAB") in November 2013 for
further information and clarification on certain aspects of the
Environmental Impact Assessment ("EIA") component of the original
application, an updated application was submitted in April 2014. In
February 2015, the Mining Inspectorate of Sweden referred the
decision regarding the Exploitation Concession for Kallak North to
the Swedish Government. Between 2015 and 2022, the application was
reviewed by different Government agencies and UNESCO but without
any final decision being made.
On 22 March 2022, the Exploitation Concession was granted
according to the Swedish Minerals Act (1991:45) with Government
Decision N2017/04553. The Exploitation Concession provides the
Company with exclusive mining rights in the defined areas for a
period of 25 years. The Exploitation Concession does not confer the
right to operate, and three additional primary permits are required
before the approval to operate can be granted:
1. Environmental Permit (Swedish: Miljötillstånd). This will be
applied for following completion of a detailed Environmental Impact
Assessment ("EIA") and associated stakeholder engagement
process.
2. Land Designation Permit (Swedish: Markanvisning) will be
required to define the industrial area associated with the mining
operation (such as tailings, waste rock, processing plant) and also
involves stakeholder engagement.
3. Building Permit (Swedish: Byggnadstillstånd) will be required prior to construction.
The Exploitation Concession was granted with twelve special
conditions. In summary, these conditions are:
1. In addition to what is stated in this decision, the company
shall, in terms of precautions, protective measures and
compensatory measures, use the land in accordance with what has
been stated in the application with appendices and supplements and
what the company has otherwise undertaken in this matter.
2. Construction works resulting from the use of the concession
shall take place during periods when the least possible negative
impact occurs on the ongoing reindeer herding in the surrounding
areas.
3. The concession area shall use as little land as possible. As
far as possible, impacts on reindeer migration routes shall be
avoided. When using the concession, the company must also ensure
that the least possible negative impact occurs when the migration
routes and grazing areas adjacent to the concession area are
used.
4. When using the concession, Jåhkågasska tjiellde Sami
village's additional costs due to the impact on reindeer migration
routes and reindeer grazing shall be compensated. The determination
of compensation and the adjudication of any disputes regarding
compensation comply with the provisions of the Minerals Act.
5. If Jåhkågasska tjiellde Sami village, despite measures to
enable the prevailing reindeer migration, needs truck transport of
its reindeer past the concession area, the company shall pay for
such transport
6. The company shall establish protective fences, protective
embankments or other facilities to minimize the risk of accidents
with reindeer within the concession area. The facilities shall be
designed to allow safe crossings for reindeer through or past the
concession area.
7. The company shall annually monitor the consequences for
reindeer husbandry of the use of the concession and report it to
the mining master, the Sami Parliament and the County
Administrative Board of Norrbotten County.
8. The company shall continuously consult with Jåhkågasska
tjiellde, Sirges and Tuorpon Sami communities in order to clarify
the need for measures and resources to meet conditions 1-7 and
otherwise to counteract disturbances to reindeer husbandry. The
consultation shall be carried out with the aim of reaching
consensus with the Sami communities and documented. The company
shall annually report completed consultations to the Sámi
Parliament, the County Administrative Board of Norrbotten and the
mining master. After the consultation, the mining master shall
decide whether there is a need for changes to the conditions in
accordance with Chapter 6. Section 4 of the Minerals Act.
9. When using the concession, the company shall conduct a
dialogue with the Swedish National Heritage Board and the Swedish
Environmental Protection Agency in order to ensure that the
necessary consideration is given to Laponia's status as a World
Heritage Site.
10. The company shall, after completion of operations, ensure
that the concession area is restored so that the land can again be
used for reindeer husbandry. A plan for remediation must be drawn
up in consultation with the affected Sami communities at an early
stage of mining operations and updated continuously.
11. The company shall provide the mining master with a financial
security of SEK 1,000,000. The security must be provided no later
than when notification of commencement of mining operations in
accordance with Section 57 of the Minerals Ordinance (1992:285)
takes place.
12. In the event that the applicant intends to use the
concession to apply for a permit under the Environmental Code for
mining activities within the concession area, such application
shall include an In-Depth Impact Assessment conducted in accordance
with the principles of the IUCN World Heritage Advice Note on
Environmental Assessment, which has previously been submitted to
the World Heritage Centre of the United Nations Educational,
Scientific Organization and culture.
Since the granting of the Exploitation Concession, the Company
has complied with these conditions.
An application was subsequently filed with the Supreme
Administrative Court by two Sami villages, Jåhkågasska tjiellde and
Sirges, and Naturskyddsföreningen, the associations for the
protection of the environment, at municipality, county and country
level, for a judicial review of the Government's awarding of the
Exploitation Concession. They argued that the Government did not
have the right to make the decision in question, with reference to
the fact that it would be contrary to legal rules in support of
nature conservation and the national interest of reindeer
husbandry. They argued that the government's decision has no legal
basis and that the Court should therefore declare the decision
invalid. On the 26 January 2023, the Court set a date of 19 and 20
September 2023 for an oral hearing.
Following the oral hearing the applicant filed a further
submission to the Court to which the Court invited the Government
to respond. The submission primarily related to environmental
impacts, a number of which are subject to the ongoing environmental
baseline studies and will form part of the Environmental Impact
Assessment and subsequent Environmental Permit application.
On 18 January 2024 the Government formally responded to the
submission. In a comprehensive response the Government endorsed the
original decision to award the Exploitation Concession. The
Government further emphasised their support for the project stating
that the Kallak Project is of national interest.
The Company understands that the Court will consider the
Government's submission alongside that of the applicant and is
expected to reach a decision during the first half of 2024. Further
updates will be provided as appropriate.
Enquiries:
Beowulf Mining plc
Ed Bowie, Chief Executive Officer ed.bowie@beowulfmining.com
SP Angel
(Nominated Adviser & Joint Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
Alternative Resource Capital
(Joint Broker)
Alex Wood Tel: +44 (0) 20 7186 9004
BlytheRay
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.
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