Beowulf Mining PLC - exploration and development of gold, copper, lead-zinc-silver and graphite with projects in Finland, Sweden and Kosovo - Mulls UNESCO's comments on company's application for an exploitation concession for the Kallak iron ore project, Sweden. UNESCO argues Swedish government should seek "revised and extended in-depth assessment" to consider impact of project on a world heritage property. Beowulf says planned mine is not located in Laponian Area, a world heritage property. UNESCO also takes issue to how planned mine may affect reindeer herding. Beowulf says: "Reindeer herding is not a static activity and the importance of any specific area varies from year to year. Reindeer migrate over an area, so their presence on and around Kallak is days in the year and not permanent. The company has been careful in its analyses to consider the proposed mine's potential impacts on Jahkagaska tjiellde's reindeer herding activities in their totality."
Beowulf Chief Executive Kurt Budge adds: "The company maintains it is inappropriate for UNESCO to write about an area that we would strongly argue falls outside of its jurisdiction." CEO adds that: "Importantly, UNESCO does not conclude that Kallak cannot be mined." Says company has already spoken to government and will be doing so again to seek clarity on next steps.
Current stock price: 3.85, down 3.3% on Wednesday, fell 12% on Tuesday after receiving UNESCO letter
Year-to-date change: down 20%
By Eric Cunha; ericcunha@alliancenews.com
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Beowulf (BEM)