Beowulf Mining shares continues a sharp move to the upside on Friday as investors reacted to comments from the new Swedish Prime Minister about the need for more mines in Sweden.
Beowulf Mining is awaiting the resolution of an application for a concession at the Kallak iron ore resource in Sweden and the positive comments from the new prime minister have raised hopes it may finally be wrapped up.
Beowulf have invested heavily in the Kallak project but have been faced with resistance from local Sami indigenous peoples who claim mining activity will harm their way of life, which includes reindeer herding.
The Kallak project is 30 miles away from a UNESCO World Heritage Site and there have been recommendations revise the mining plan to help protect the site.
Having dragged on for 7 years, Beowulf investors are now hoping Sweden will grant their wishes and enable mining activity to progress.
Beowulf Mining shares rose over 34% in early trade on Friday.
In light of the positive comments from the prime minister, Beowulf CEO Kurt Budge wrote to Sweden’s Minister of Enterprise and Innovation, Karl-Petter Thorwaldsson, urging the Swedish government to consider their application and the economic benefits for the area.
“Fossil-free steel making in Sweden is in the ascendency. Yet when it comes to permitting, there is no visible understanding exhibited by authorities or the Government that steel plants need sustainably produced high quality iron ore, like Kallak’s market-leading 71.5 per cent magnetite iron concentrate, and that competitive sources of supply, alternatives to the state iron ore company LKAB, are positive dynamics for developers and investors,” Beowulf CEO Kurt Budge said in the letter.
“Jokkmokk desperately needs investment and jobs. Kallak will bring billions of SEK in investment and hundreds of jobs to the municipality that will keep people employed and support families for decades.”
“The application you have on your desk is for Kallak North. Yet the Company has continued to invest, explore and assess the potential in the Kallak area, and our licences indicate iron ore mineralisation that could support mining for 30-40 years. More than doubling the current estimated life of Kallak North.”