26 February 2024
Swedish Government initiates
inquiry to overturn uranium mining ban
|
KEY
POINTS:
·
The Swedish Government have
announced an inquiry into the ban on mining
uranium
·
The inquiry will conclude on
15 May 2024 at which point, the Government can proceed
to lift the
ban on uranium mining
·
The Häggån Project contains
Uranium Mineral Resources[1]
of
approximately 800 M lbs of
U3O8
·
Uranium has the potential to
increase the Häggån Project NPV by 37% and adds 14% to
revenue[2] from current scoping study NPV range of
US$ 456 million to US$ 1,307 million
·
Häggån can assist Sweden
with their aims of becoming climate-neutral and energy
independent
·
Aura strongly supports the
Swedish Government to allow safe and environmentally responsible
extraction of Uranium in Sweden
|
"If
the European union is to become the first climate-neutral
continent, access to sustainable metals and minerals must be
ensured. 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," says Minister for Climate and the
Environment, Romina Pourmokhtari.[3]
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased to provide an
update in relation to the Häggån Project.
The Swedish Government have
announced on Friday the 23rd of February 2024 the launch of an
inquiry to overturn the existing ban on mining uranium, which has
been in place since 2018. The inquiry will investigate the
regulatory changes needed to make uranium extraction legal, and
analyse whether mining of uranium should be allowed. The
conclusions of the inquiry will be presented on the 15th of May
2024. Once the results of the inquiry are published, the Government
can choose to go forward with a legislative proposal to
Parliament.
The Häggån asset, located in the
municipality of Berg in the county of Jämtland, contains Mineral
Resources1 of approximately 800 million lbs of
U3O8. The primary metals and minerals in
Häggån are vanadium and sulphate of potash "SOP" and uranium, with
nickel, molybdenum and zinc also present. Approximately 14
percent of the known value of the asset is uranium. Including
uranium into the previously published scoping
study[4] increased
the Project NPV by 37% at a uranium price of US$ 65/lb
U3O8 from the previously stated range of
between US$ 456 million to US$ 1307 million.
Sweden currently uses 2.4Mlbs
U3O8 annually in their three nuclear reactors
and has committed to building two additional nuclear reactors by
2035, Häggån has the potential to supply a significant portion of
Sweden's nuclear fuel requirements.
Aura intends to file for processing
concession for Häggån K1 during 2024 with the Swedish Mining
Inspectorate. A Swedish processing concession (exploitation permit)
is valid for 25 years.
Commenting on the inquiry, CEO of Aura Energy, Andrew Grove,
said:
"Global energy demand continues to rise, and the need for
carbon free, reliable baseload electricity generation means that a
renaissance for nuclear power is under way globally. This
announcement is a logical step by the Swedish Government towards
allowing the extraction of uranium domestically to secure its own
and others' needs. 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. Häggån is
a polymetallic asset where uranium is only a minor component of a
suite of future facing metals, although a component with
significant value and energy security for Sweden. It makes sense
economically and environmentally to make full use of these
resources."
"Releasing the value of uranium within the Häggån Project has
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. 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."
ENDS
This Announcement contains inside
information for the purposes of the UK version of the market abuse
regulation (EU No. 596/2014) as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018
("UK MAR").
For
further information, please contact:
Andrew Grove
Managing Director and CEO
Aura Energy Limited
agrove@auraee.com
+61 414 011 383
|
Paul
Ryan
Citadel-MAGNUS
Investor & Media
Relations
pryan@citadelmagnus.com
+61 409 296 511
|
SP
Angel Corporate Finance LLP
Nominated Advisor and
Broker
David Hignell
Kasia Brzozowska
+44 (0) 203 470 0470
|
About Aura Energy (ASX: AEE, AIM:
AURA)
Aura Energy is an Australian-based
mineral company with major uranium and polymetallic projects in
Africa and Europe.
The Company is focused on developing
a uranium mine at the Tiris Uranium Project, a major greenfield
uranium discovery in Mauritania. The Front End Engineering Design
has confirmed Tiris to be a potential high-value low-cost low-risk
long-life commercial scaled near term uranium mine.
Aura plans to transition from a
uranium explorer to a uranium producer to capitalise on the rapidly
growing demand for nuclear power as the world shifts towards a
decarbonised energy sector.
Beyond the Tiris Project, Aura owns
100% of the Häggån Project in Sweden. Häggån contains a
global-scale 2.5 billion tonnes of vanadium, sulphate of potash
("SOP") and uranium resources. Utilising only 3% of the resource, a
2023 Scoping Study outlined a 27-year mine life based on mining
3.5Mtpa.
Competent Person Statements
The Häggån Project Resource was
released dated 10 October 2019 "Häggån Battery Metal Project
Resource Upgrade Estimate Successfully Completed". The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the relevant market
announcement and that all material assumptions and technical
parameters underpinning the estimates in the relevant market
announcements continue to apply and have not materially
changed.
Disclaimer Regarding Forward-Looking
Statements
This ASX announcement (Announcement)
contains various forward-looking statements. All statements other
than statements of historical fact are forward-looking statements.
Forward-looking statements are inherently subject to uncertainties
in that they may be affected by a variety of known and unknown
risks, variables and factors which could cause actual values or
results, performance, or achievements to differ
materially from the expectations described in such forward-looking
statements. The Company does not give any assurance that
the anticipated results, performance, or achievements
expressed or implied in those forward-looking statements will be
achieved.