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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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