- The Swedish Government has announced an inquiry into the current ban on mining uranium in the country
- Aura Energy’s Häggån project hosts uranium resources of ~800Mlb U3O8
- Company strongly supports safe and environmentally responsible extraction of uranium in Sweden, which has been banned since 2018.
Special Report: Aura Energy says it strongly supports the Swedish Government’s inquiry into potentially overturning the existing ban on uranium mining in the country.
The Swedish government announced the move on 23 February, as the historically anti-nuclear country looks to increase nuclear investment and make way for greater energy capacity.
The existing ban on uranium mining has been in place since 2018.
Minister for Climate and the Environment Romina Pourmokhtari said Sweden needs to use the uranium it has, rather than sorting it out and considering it as waste, if the European Union is to become the first climate-neutral continent.
The current Swedish Government plans to build at least at least 10 large reactors over the next 20 years in a bid to meet the forecast demand for low-carbon energy.
The Swedish inquiry will conclude on 15 May 2024, at which point the government can proceed to lift the ban on uranium mining.
It will investigate the regulatory changes needed to make uranium extraction legal and analyse whether uranium mining should be allowed when it is not a nuclear activity.
Positive move for uranium miners
For companies operating in the Nordic country, such as Aura Energy (ASX:AEE), the announcement represents a logical step towards allowing the extraction of uranium domestically.
“It is the start of a process which I hope will result in new legislation that not only makes it legally possible to mine uranium, but also provides a predictable permit process for uranium extraction alongside the mining of other metals,” AEE managing director and chief executive Andrew Grove says.
“The Häggån project is a polymetallic asset where uranium is only a minor component, although a component with significant value for Sweden.
“It makes sense economically and environmentally to make full use of these resources.”
AEE’s Häggån project consists of vanadium, sulphate of potash, uranium, nickel, molybdenum and zinc. Approximately 14% of the known value of the asset – located in the municipality of Berg – is uranium.
Officially adding uranium to the mix has the potential to lift Häggån’s net-present value (NPV) by 37%, according to AEE. The company says it will also add an additional 14% to revenue from the current scoping study NPV range of US$456 million to US$1.307 billion.
Strengthening European energy supply
AEE now intends to file for processing concession (exploitation permit) for Häggån later this year.
Grove says releasing the value of uranium within the Häggån project will have a “significantly positive economic impact on an already robust project”.
“The Swedish Government’s stated aim aligns well with the ability to mine domestic uranium, reducing foreign dependency and strengthening domestic and European energy supply,” he says.
“It is of course essential that uranium is mined in a way that does not threaten the local environment or water supply, and I am certain that we will be able to demonstrate that within the framework of the Swedish permit process.”
This article was developed in collaboration with Aura Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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