JOHANNESBURG (miningweekly.com) – Aim-listed Beowulf Mining on Thursday said the development of its Kallak magnetite iron-ore project, in Sweden, into a mining operation will create direct and indirect jobs, increase tax revenues and slow down population decline in the nearby town of Jokkmokk.
A socioeconomic study, initiated by Jokkmokks Kommun and completed by Copenhagen Economics, showed that a mining operation at Kallak has the potential to create 250 direct jobs and over 300 indirect jobs in Jokkmokk, sustained over a 25-year period.
“Kallak has the potential to generate SKr1-billion in tax revenues, considering the case where 70% of the mine's workforce are based locally, with annual tax revenues of SKr40-million over a 25-year mine life,” said Beowulf CEO Kurt Budge.
The tax revenue boost is expected to assist in the development and sustaining of public services and infrastructure in Jokkmokk, which are at risk owing to a lack of new investment and job creation in the community and a declining and ageing population.
“The company will seek to establish a task force with Jokkmokks Kommun and local employment agencies, so that between now and the start of operations, plans are developed and implemented to make sure as many as possible jobs are available to people living in Jokkmokk,” he added.
"With this project, we have tried to better articulate the economic benefits, to Jokkmokk and Norrbotten [County], of a modern and sustainable mining operation at Kallak – the big picture – and how it fits in with the objectives and ambitions of Swedish policy and decision-makers,” Budge concluded.
The mineral exploration and development company has invested over SKr72-million in Kallak to date.