Tertiary Minerals (TYM) has published more detail about the recently granted Mining Concession at Storuman. Key points include a 25 year life, a licence area of 184 hectares (predominantly limited to the open pit), the permit is solely for the extraction of fluorspar. The announcement also states that the “Swedish Mining Inspectorate has granted the Permit by giving precedence to the national interest of minerals over the national interests of reindeer herding”. It also describes how during the process, the Swedish Mining Inspectorate and Tertiary Minerals consulted with 7 stakeholder groups in the area, only the Sami Reindeer Husbandry Community objected. The Mining Concession decision may be appealed by 24 March 2016.
Our view: Probably the most important part of the announcement is the clear local support from local groups and of the Swedish mining inspectorate. The lack of Sami support is no surprise and we expect them or an environmental group to object. Here begins the second part of the process which involves negotiating with the Sami groups and getting an environmental permit from the Swedish Land and Environmental Court. The environmental permit application will include various measures/precautions to ensure mining and reindeer husbandry co-exist successfully. Tertiary has full support of the Swedish Mining Inspectorate. As such, we reiterate a Speculative Buy on the stock.
Beaufort Securities acts as a corporate broker to Tertiary Minerals plc