LONDON (Alliance News) - Beowulf Mining PLC Friday published an open letter to address concerns that have been put forward by villages and communities near the company's Kallak project in northern Sweden, in an attempt to win support from the local population.
Beowulf has applied for an exploitation concession for the Kallak North project and is currently awaiting a decision from Swedish authorities. However, ever since Beowulf launched the project back in 2013, the local community in the Sami villages has been highlighting concerns about the project, mainly the effect it will have on local reindeer herding.
The Sami villages are against the mine, but Beowulf Chief Executive Kurt Budge has been trying to alleviate concerns and gain their support since taking over at the helm of Beowulf back in 2014.
Shareholders appear to have confidence in Budge, with shares considerably higher now than before Budge's appointment, even though the company has faced a long wait for the concession at Kallak, and the business remains loss making with no revenue coming through the door. Beowulf shares prior to the appointment of Budge stood at only 2.0 pence per share but were trading at 5.55p on Friday, down 6.3% on the day.
Beowulf has attempted to accommodate local concerns from the start, and signed an agreement with the Sami villages in 2013 to co-ordinate the company's fieldwork with the local community's reindeer herding to ensure there was minimal disruption.
The chairmen of the Jahkagasska and Sirges Sami villages have recently asked Beowulf several questions relating to the company progressing its application for an concession for Kallak, and Budge released an open letter Friday to address those concerns and publicly request a meeting after several failed attempts to meet in the past.
"The company looks forward to a continued dialogue with all concerned and hopes that the chairmen of the Sami Villages have the opportunity to meet with me soon. Mining and reindeer husbandry has historically been able to co-exist in Sweden, and I believe that this is possible with a mine at Kallak," said Budge.
Beowulf stressed it will continue to invest in the project despite the people of the Sami villages openly expressing their opposition to the project, promising "jobs and prosperity" to the region that can help slow the declining population and improve the nearby research facility.
Beowulf also highlighted that a study carried out by local stakeholders agreed the mine would create jobs and generate tax revenue for the region, and that the company has had open ears from the start, demonstrated by the company's decision to cancel a proposed transport route following concerns of the local community back in 2014.
"The company takes its responsibilities seriously: showing respect for all its stakeholders and listening to their concerns. The company has a clear ambition to work with local interests in the development of Kallak. We want to become a local partner," said Budge in the open letter.
Although Beowulf is committed to Kallak, Budge has taken steps to diversify the company's portfolio by acquiring a string of four early stage graphite exploration projects in Finland, as iron ore prices have plummeted during the lengthy time the miner has waited for the concession to be awarded at Kallak.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Beowulf (BEM)