Aura Energy Ltd (ASX:AEE, AIM:AURA) has lodged an exploitation permit application with the Swedish Mining Inspectorate for Häggån K no 1, and a new exploration application for Häggån no 2, which will cover areas of the original no 1 concession.
The Häggån Project in central Sweden boasts a polymetallic mineral resource of 2 billion tonnes, containing vanadium, potassium, nickel, zinc, molybdenum and uranium – minerals critical to Europe’s energy transition as well as food and energy security.
Supporting critical mineral strategy
“The Exploitation Permit Application process has confirmed some crucial matters about the Häggån future facing metals project, stemming from our work focused on both environment and social impacts,” Aura Energy managing director and CEO Andrew Grove said.
“Sweden is currently the EU's leading mining and mineral nation, and Sweden's minerals strategy will strengthen that position by using its mineral resources sustainably.
“Importantly, we expect this to help Aura to create jobs and support economic growth in Sweden as we progress the project development.”
The new exploration permit for Häggån would allow Aura to undertake further environmental and social impact studies with the ultimate goal of developing a profitable mine that operates sustainably, responsibly and in full compliance with Swedish regulations.
Lifting the nuclear ban
“The Swedish Government acknowledges that nuclear power is critical for Sweden to achieve its clean energy ambitions,” Grove continued.
“Against this backdrop, we welcome the government process aimed at lifting Sweden’s ban on uranium extraction in both a socially and environmentally sustainable manner.
“The Häggån polymetallic ore body also contains very significant quantities of uranium, with mineral resources of over 800 million pounds U3O8.
“Uranium was not considered in the scoping study or the exploitation application because of the current uranium mining ban and therefore may represent significant future economic upside once the ban has been overturned.”
Mining uranium has been banned on Swedish soil since 2018, despite the country operating six nuclear power reactors which provide about a third of its energy needs.
"If the European Union is to become the first climate-neutral continent, access to sustainable metals and minerals must be ensured," Swedish Minister for Climate and Environment Romina Pourmokhtari said.
"We need to use the uranium we have, instead of sorting it out and considering it as waste, as is the case now - due to the current ban on mining uranium."
Sweden currently uses about 2.4 million pounds of uranium annually and has committed to building two more reactors by 2035.
Powerful potential upside
“The 2023 Häggån Scoping Study only considers approximately 3% or 65 million tonnes of the total 2 billion tonnes Häggån Project mineral resource,” Grove explained.
“The scoping study underpins Aura Energy’s application for a 25-year exploitation permit. Aura Energy is confident that further drilling will continue to de-risk the resource and likely increase mine life and further enhance the project economics.
"The world’s decarbonisation quest together with the mining environment in Sweden support a strong future for the Häggån Project.
“Häggån is a significant project which could transform both Aura and the Swedish energy metals mining industry and, as part of its evaluation, Aura will review all options to create value from the Project for all stakeholders.”
The project’s economics would be vastly improved with the addition of uranium mining, which AAE says would increase Häggån’s net present value (NPV) by 37% at a uranium price of US$65 per pound of U3O8.
Uranium’s spot price was sitting at US$79.27 as of September 4, having gained 31% over the last year of trading.