30th Jun 2016 07:58
LONDON (Alliance News) - Beowulf Mining PLC on Thursday said its application for an exploitation concession at the Kallak magnetite iron ore site in Sweden has been listed on the Swedish government's meeting agenda for discussion on Thursday.
Shares in Beowulf doubled in value to 7.00 pence early Thursday on the news.
The mining inspectorate of Sweden recommended the concession for the project should be awarded to the company nine months ago, but neither the Swedish government nor the minister for enterprise and innovation have issued any response to the company since.
However, on Thursday, Beowulf said its application had been tabled for discussion by the Swedish government, noting that it will be notified of any outcome once a decision is made public.
"We are pleased that the government has our application tabled for discussion and look forward to hearing the outcome. We believe it is in the best interests of our stakeholders in Sweden, and our Swedish and non-Swedish shareholders, that our application is further reviewed by the mining inspectorate, so that any future award of the exploitation concession is consistent with the judgement of the Swedish supreme administrative court in the case of the Norra Karr project," said Chief Executive Kurt Budge.
This relates to the judgement of the supreme administrative court of Sweden in February that Tasman Metal Ltd's mining lease for Norra Karr be cancelled on the basis that environmental studies did not adequately support future mining operation at the site.
Until that point, future mining operation analysis would have been done at the environmental permitting stage and not the environmental impact assessment stage, and the decision criteria for the exploitation concession had been limited to the concession area. However, the decision had meant the criteria would be expanded.
By Hannah Boland; [email protected]; @Hannaheboland
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