2nd Oct 2014 13:59
LONDON (Alliance News) - Beowulf Mining PLC said Thursday it plans to contend a decision by a county administrative board in Sweden to not grant it an exploitation concession for its Kallak iron ore project, over concerns about its effect on the reindeer husbandry industry in the nearby area.
The board said it believes the possible transport routes from the future mine through areas used for reindeer husbandry, and the Laponia area around 80 kilometres from Kallak, could be detrimental to those areas.
Beowulf has taken advice from its lawyers, and contends that the issue of evaluating future transport routes is not a task for the board when decided on an exploitation concession, as transport issues are typically addressed later in the project development and permitting process by an environmental court when it applies for an environmental permit.
Beowulf said the board's comments are non-binding, and it will now get an opportunity to give comments on the consultation response before the mining inspectorate in Sweden decides on the exploitation concession.
The company said it remains convinced that mining and reindeer husbandry can coexist in the area, and is hopeful it will be granted the exploitation concession after its further submission.
It did, however, welcome the board's decision that its environmental impact assessment is sufficient.
"It is encouraging that the environmental issues raised earlier by the county have now been satisfactorily answered to the board's satisfaction. We have met all the requirements set by the Swedish regulations for the application and will stress this in our response both in writing and in person to the Mining Inspectorate," said Executive Chairman Clive Sinclair-Poulton in a statement.
Shares in Beowulf are trading down 19% at 2.34 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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