Debate in Swedish parliament over whether to lift the country’s ban on uranium mining has seen Aura Energy Ltd (ASX:AEE, AIM:AURA) take a measured approach to the potential outcome.
Aura has 100% ownership of the Haggan Vanadium-Uranium Project, which has a 15.2 billion pounds vanadium resource (330 million pounds indicated + 14.88 billion pounds inferred).
The company notes that a change to the current Swedish ban on mining uranium requires a legislative initiative from the Swedish Government, but that all four parties in the conservative coalition have stated that they support lifting the ban on uranium mining.
Despite this, a problem arose for Aura on Friday when the Industry Committee of the Swedish parliament (Riksdag) voted to reject several private members’ motions that supported the resumption of mining.
The company’s share price dipped 4% and Aura was placed in a trading halt.
The Swedish Government’s policy is to undertake an orderly and considered review of uranium mining, which Aura fully supports.
Aura also notes that these types of motions are routinely rejected on procedural points of order, even if they are aligned with the government’s stated policy objectives.
The government is currently clear on its objectives to lift the ban and the Minister of Energy and Enterprise, Ebba Busch, once again made supporting comments regarding uranium in parliament.
You can see the translation of Ms Busch’s speech on the company’s website at auraenergy.com.au.
Aura is buoyed by the Swedish Government’s overall support for the resumption of uranium mining and sat down with Proactive broadcaster Andrew Scott to discuss the developments:
Flipping the switch on uranium
On January 25, 2023, Swedish media reported that a majority of the Swedish Parliament had resolved to allow for exploration and mining of uranium in Sweden.
While a vote on March 30 was made in favour of maintaining the uranium moratorium, suggestions, preparation and the debate of a motion to officially lift the moratorium on uranium exploration and mining is ongoing.
The moratorium has been in place since 2018, however, the new centre-right coalition government which was formed in October 2022 has indicated support for expanding Sweden’s nuclear power, particularly in light of current energy shortages and a move to clean energy solutions.
Sweden has six operating nuclear reactors that supply about 40% of its electricity.
The November 2022 motion to revert the Minerals Act back to its original wording before August 1, 2018, would see uranium mining in Sweden restart.
"Right now, there is a transition to fossil-free where industries and transport are electrified," Prime Minister Ulf Kristersson said. "It requires much more clean electricity throughout the country. To cope with this, more of all fossil-free energy types are needed. We want to make it possible to build more nuclear power plants in more places."
Deputy Prime Minister and Minister for Energy, Business and Industry Ebba Busch said. "Sweden needs more electricity. Fossil-free, cheap electricity in the right place, at the right time. It is needed for the sake of jobs, competitiveness and the green transition. Nuclear power is a necessary basis in the energy mix that builds the Swedish energy system strong again."