With summer in full swing and Aim-listed Beowulf Mining still without a decision on its Kallak application in Sweden, CEO Kurt Budge said on Tuesday that the company would be contacting the government to understand the causes of a further delay.

Beowulf indicated in April that it was “reasonable to expect a decision on Kallak before the summer”, based on the consultation work undertaken before last year’s Swedish elections, and allowing time for the new government, formed in January, to get up to speed.

"Despite the government's acknowledgment that the company has been waiting an excessive period of time for a decision, we are still waiting, and with the holidays in Sweden coming to an end, the company will be contacting the government to understanding the causes of this further delay,” Budge said.

He had explained the “ridiculous situation” regarding the Kallak application process at Almedalen, in July, but also used the political week gathering to outline a three-step plan for advancing the iron-ore project, should it be granted a concession.

The first step for Kallak will be to complete the scoping study within 12 months of being awarded a concession, while, in parallel, developing a roadmap for environmental permitting.

The company initiated a scoping study in October 2017, but curtailed work because of continued delays in processing the Kallak application, owing to concern about the mine’s potential impact on reindeer herding.

The scoping study’s focus would be on assessing logistics and transport options, with a specific emphasis on the interaction with reindeer herding activities. The study would also probe market opportunities for Kallak’s production, including “super” high-grade magnetite concentrate, over 71% iron-content with low deleterious elements and what value addition processing steps could be achieved at the mine.

Other focus areas would be preparing a workforce in readiness for mine construction and operation, developing Kallak as an innovation centre and setting up an incubator for start-up enterprises in Jokkmokk.

The second step involves setting up a development taskforce with Jokkmokks Kommun and other partners to coordinate the activities of interested parties in Kallak, while the third leg of the Kallak plan revolves around discussions with the Sami reindeer herding communities.

"It is invigorating to imagine the possibilities around developing Kallak, for building a sustainable mining operation, and in so doing transforming Jokkmokk, if you remove yourself from the politics, albeit temporarily, and believe the concession is imminent and that we can soon get on with the 'job in hand',” Budge said.

While Beowulf has been waiting for a decision on Kallak, Fennoscandian's exploration team has been active in the field investigating other graphite prospects in the portfolio, and the funds invested in Vardar have been put to good use, with drilling and other exploration activities continuing through the summer. 

"We have a busy period to the end of the year.  If we get a positive decision on the concession for Kallak, for which we have done everything required, that will kick-start the project and multiple workstreams for the company.  We are prepared and waiting to get going,” he stated.