STOCKHOLM - The Swedish government has taken steps toward potentially lifting the ban on uranium mining, which has been in effect since 2018. An inquiry conducted by the government, with results announced on December 20, 2024, recommended that uranium should be regulated within the Minerals Act as a concession mineral. This change would enable the exploitation of uranium deposits in Sweden, aligning the country’s mining legislation with its energy policy aimed at expanding nuclear power.
Sweden, which currently generates a third of its electricity from nuclear power, relies entirely on imported uranium for its nuclear fuel. The potential change in legislation could enhance Sweden’s energy security by allowing it to tap into its own uranium resources. The Häggån deposit in the Jämtland county, a notable site for its uranium content, is estimated to have enough uranium to supply the country’s nuclear reactors for over 300 years.
The governing coalition, which holds a majority in the Swedish Parliament, has expressed unanimous support for revising the current uranium mining ban. The inquiry’s findings will undergo a wider consultation process before being drafted into a legislative proposal for parliamentary consideration. If approved, the legislative changes could come into effect on January 1, 2026.
Aura Energy Limited (ASX: AEE, AIM: AURA), a company with interests in the Häggån project, has been included as a consultation party for the uranium inquiry. Andrew Grove, Aura Energy’s Managing Director and CEO, commented on the development, highlighting the significance of Sweden’s move towards low-carbon energy self-sufficiency and the potential economic benefits of uranium mining. Grove also noted the country’s high environmental standards and robust permitting system, which would extend to uranium extraction operations.
The Häggån project, primarily a polymetallic resource, contains other metals and minerals such as vanadium and sulphate of potash, along with nickel, molybdenum, and zinc. Aura Energy’s 2023 Scoping Study on Häggån projected strong economic prospects, with a base case net present value (NPV) ranging from US$380 million to US$1.23 billion, excluding uranium. The inclusion of uranium could increase the NPV by 37%.
This article is based on a press release statement from Aura Energy Limited.
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