Exploration and development company Beowulf Mining is considering “all options to take legal action” against the government of Sweden, but said on Thursday that it had not taken a decision yet.
CEO Kurt Budge confirmed that the board of Beowulf met in Stockholm this week and that they were updated by the company’s legal advisers.
The company has been lobbying the Swedish government to secure the concession for Kallak North, which it believes will create several hundred jobs, but it has been waiting for years to hear what government has decided.
"How can any mining company consider Sweden a low risk jurisdiction for investment, when looking at the Kallak process? Beowulf has been allowed to invest SEK80-million over almost 13 years and the government sits on the application since July 2017, offering nothing in terms of transparency and predictability of process and timeline to a decision,” said Budge.
He added that Sweden’s reputation as a low-risk mining jurisdiction was being damaged by the Kallak process.
“Investor confidence can only be restored if the government honours the investments and work done by companies applying for licences and concessions, in accordance with the laws of the country.”
Analysts at London-based SP Angel say that the Kallak case is not the first in which "goalposts have been moved" after a company has made significant investment in developing a mineral project.
It cites the case of London-listed Aura Energy, which is seeking compensation over the uranium ban introduced in Sweden in August 2018, and the financial losses that it incurred as a result of the ban.