LULEÅ deposit in northern Kallak contains 140 million tonnes of ore - which is larger than Tapulimyren Kaunisvaara. Mountain State must now assess Kallaks economic viability.
Beowulf chairman Clive Sinclair-Poulton, the company's technical director Jan-Ola Larsson, as well as the two new board members Bevan Metcalf and Kurt Budge met mine inspector Åsa Persson at Mountain State on Tuesday.
- It was a short meeting which was about what happens next. We have sent the County Administrative Board's opinion to the company and they have three weeks to come up with additional information, says Åsa Persson.
The Company has on October 24 in which to speak. Then, it takes approximately two months for the Mountain State to handle the matter and come to a decision.
So far Bergsstaten never chosen to go against the County Administrative Board's opinion.
- But it says nothing about what happens in this case, says Åsa Persson.
Mountain State shall broadly look at two things: ore evidence, therefore if the deposit has a financial viability over time, and think about whether they should stick with the County Administrative Board's opinion, which avstyrkte a mining concession in Kallak north with reference to the question marks that exist around the issue of transport and hence the impact on the environment.
Jokkmokk Iron Mines has used an Australian method for classification of the ore, the so cold, the JORC method. There are three different stages in the mineralization are recognized: adopted, indicated and proven. Deposit Kallak are in the middle stage, indicated.
Mining engineer Stefan Tuoma goes partly to the data the company submitted, made by an external consultant. But also check the ore itself.
- I also go through everything and check that it is okay, that the classification is correct and that the ore is to break, he says.
What can you say about the ore deposit in northern Kallak?
- There is an iron ore deposit of 140 million tonnes, which is slightly more than Tapulimyren. It also has higher levels, he says.
The known ore reserves in Tapulimyren in Kaunisvaara outside Pajala is just under 100 million tonnes.
There are three options for output around Jimabs application for an exploitation concession. One is to Bergsstaten agree with the provincial government and says no, then the company can choose to appeal to the government. Another could be that the Mining Inspectorate goes against the provincial government and send the matter further directly to the Government for decision.
A third option is to Bergsstaten goes on the county line - but the company chooses not to go to the government.
- We believe that iron ore prices will rise, and it is at 100 dollars per ton, we believe in a very good future for Kallak.
Sami villages Jåhkågasska and Sirges say they have not received an invitation this week. Otherwise consider both the Sami villages that there is something new to discuss since the last meeting was held in November 2013.
- The day there is something to discuss, then we must do it. Before that, I will not throw away a whole day to sit and drink coffee with them. Right now it feels a mine farther than ever in Kallakområdet says Niklas Nails, president of Jåhkågasska Sami village.
LULEÅ British exploration company Beowulf has recruited two new directors with more mining skills than their predecessors. Now they do a tour of Norrbotten. At a hotel in the center of Luleå takes Beowulf chairman Clive Sinclair-Poulton against the media for interviews on Tuesday morning. He will then proceed to a meeting at the Mountain State - an important stop on the tour because it's on the Mountain State table that subsidiary Jokkmokk Iron Mines' application for an exploitation concession is right now.
- We are waiting for their response, how to proceed depends a lot on what they say.
Sinclair-Poulton said that he was surprised that the provincial government avstyrkte their application.
- I was very surprised. I thought they would come back and ask questions. And we thought we had covered all the questions they asked in November. We have respect for the process and believe that everything can be solved.
Full speed ahead Any plans to give up is "absolutely not" - despite two turned, from Norrbotten County Administrative Board. So far the company has invested 60 million Swedish crowns in the project and has drilled a total of 8,000 meters and completed a test pit. They also have four employees in place in Jokkmokk. Company is now changing, therefore the parts of the UK Board. In comes Bevan Metcalf and Kurt Budge - Two people should have more experience in the mining industry than their predecessors.
- We want to introduce them to northern Sweden so that they get a better understanding of the situation here. We'll show them Kallak. We will meet with landowners, residents and politicians in Jokkmokk, it is a fullpsäckat schedule, says Clive Sinclair-Poulton, who says it's important to talk to as many people as possible.
The entire delegation is up to Friday but no public meeting with the residents of Jokkmokk is not planned.
Should you meet the Sami villages?
- We have tried to meet them for long. We want to take every opportunity to meet with them, but some times it is difficult.
Have they said no?
- I have not heard anything back, says Clive Sinclair-Poulton.
Many new jobs promised Kallakgruvan can be up and running within five to six years. Sinclair-Poulton also talks about a mining operation that may last for 40-50 years and provide 1,500 direct and indirect jobs in Norrbotten. He expects to need at least $ 800 million to cope with the start-up, financing that must be resolved, including bank loans, private investors, government money and European money. And the market, he says, is mainly Europe.
Sorry, didn't really answer your question properly. If the MI are just passing it up the line, there's nothing to stop that happening now. Unfortunately, Swedish bureaucracy never gets out of first gear. Still like to think this month though. ATB.
I don't think the MI will make any decision other than to pass it up the line to the government, so we could well be looking at 2015 before decision is known. I hope the company choose to scale back expenditure to a minimum in the meantime. GLA.
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