Beowulf Mining remains hopeful over Kallak North concession saga

Mineral exploration and development company Beowulf Mining updated the market on its application for an exploitation concession for the Kallak North iron ore project on Friday.

The AIM-traded firm said it had received a response to the letter sent by its chief executive officer to Sweden’s Minister for Enterprise and Innovation, Ibrahim Baylan.

It said the minister explained that, since the CEO's request for a meeting “concerns a forthcoming Government decision; a dossier that is currently under preparation”, the government was unable to meet or comment with regard to its ongoing review.

In September, Beowulf engaged a “highly respected” Stockholm law firm to review its Kallak application.

Specifically, it said statements by the County Administrative Board for the County of Norrbotten, including the board’s statement made in November 2017 and the firm’s comments to the Government criticising that statement.

The legal analysis was “unequivocal”, Beowulf claimed, that it had “robustly argued” its case for a concession to be awarded.

“It is positive that Mr Baylan writes about a 'forthcoming decision',” said Beowulf Mining chief executive officer Kurt Budge.

“It's six and a half years since the Kallak application was first submitted and it's widely recognised in Sweden that the company's application has been completely mishandled, and the case is rightly a focus for investors considering the feasibility of Swedish mining projects.

“I was in Jokkmokk between 26-27 September and met with Robert Bernhardsson - the mayor - and this week he has made strong comments in an interview in Dagens Industri about the inaction of Government in taking a decision on Kallak.”

Budge said Jokkmokk's economic challenges were “acute”, and while Kallak presented a “transformative opportunity” for the town and its resurgence, the government's job had not been made easier because of the County Administrative Board’s “flawed statement” made in November 2017.

“However, the company is not looking backwards, and as we appear to be moving towards a decision by the government, our discussions in Jokkmokk are about the future of Kallak and the town, working in partnership with the municipality, the community and the Sami reindeer herding community.

“Beowulf's Swedish and UK shareholders are justifiably exasperated by the Kallak saga.”

Kurt Budge said their investment of around SEK 80m (£6.58m) in Kallak over a decade deserved “more”.

“The legal analysis of our case is unequivocal and there should be no impediment to the concession for Kallak being granted.

“I look forward to keeping the market updated.”