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(Alliance News) - Beowulf Mining PLC on Friday said that residents of an indigenous Swedish village near its Kallak project may take legal action against the Swedish government, which awarded an exploitation concession there.
Shares in the mineral exploration and development company were down 10% to 4.95 pence each in London on Friday midday.
In March, Beowulf said that its 100% owned mining company Jokkmokk Iron Mines AB won an exploitation concession for the Kallak North Iron Ore project in Sweden. This gave the mining company the green light to proceed with its plans for an iron ore mine in the area.
On Friday, Beowulf said that lawyers for the indigenous Sami village of Jahkagasska tjiellde had issued a press release announcing that they will take legal action against the Swedish government following its decision in March.
In the press release, the lawyers said that Jahkagasska tjiellde is the Sami village most affected by mining establishments in Kallak. They explained that the mine, which is planned to be in the middle of the Sami village's winter grazing area, will cut Jahkagasska tjiellde into two parts, having "devastating" consequences for reindeer husbandry. Further, in the long run, the establishment of a mine poses a threat to the Sami culture in the area, the lawyers added.
The Sami village said that a press conference will be called on June 15, where they are expected to describe how they will proceed.
Beowulf Chief Executive Kurt Budge said: "Last week, I wrote to the chairman of Jahkagasska tjiellde, with the wish to respectfully re-engage with him, to build a framework for ongoing good-faith dialogue and the joint development of an engagement agreement, which can establish the mutually agreed terms by which engagement and consultation will take place between us in relation to the Kallak project."
"The evidence in Sweden is that there are many industries that coexist with reindeer herding, mining being just one of them, that Sami culture and livelihoods are protected and wider society benefits. This will be the case at Kallak and good-faith dialogue is the way to proceed," Budge added.
By Sophie Rose; sophierose@alliancenews.com
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