Exciting chapter ahead for Beowulf

12th Oct 2011 10:07

Beowulf Mining's Ruoutevare and Kallak projects could produce high levels of revenue for the company, a report has shown.The group said that Ruoutevare could generate gross revenues of $9.1bn over a 15 year mine life at an extraction rate of 10m tonnes per year. Operating costs for the period is estimated to be $2.98bn, with total capital costs of around $0.8bn. Kallak could generate $8.4bn over the same period, at the same rate, with operating costs of around $3bn and total capital costs of about $0.88bn. Executive chairman Clive Sinclair-Poulton said: "Since RMG's 2010 conceptual studies were published, iron ore prices have increased significantly and this market report from RMG serves to demonstrate the commercial potential of our flagship iron ore projects.  The firm's technical director, Dr Jan Ola Larsson, added: "These preliminary economic indications are most positive and with strong and stable iron ore prices and demand forecast over the longer term we will continue to focus our efforts on the development and advancement of these major projects."The share price rose 22.14% to 40p by 10:23.NR