The Swedish government has initiated an investigation into the potential lifting of its ban on uranium mining, which was established in May 2018. This ban, integrated into the Environmental Code, effectively prohibited the exploration and mining of uranium beginning August 1, 2018.
“If the European Union is to become the first climate-neutral continent, access to sustainable metals and minerals must be ensured,” Romina Pourmokhtari, Minister for Climate and the Environment, said Friday in a press release. “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.”
More than a quarter of Europe’s known uranium resources are located within Sweden, presenting a significant opportunity for the country to bolster its energy security and environmental sustainability. The government’s review is expected to conclude by May 15th, with potential legislative proposals to follow, which could overturn the existing ban on uranium mining.
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The nation operates six nuclear reactors that generate approximately one-third of its electricity supply and has recently approved legislation to facilitate the expansion of its nuclear energy capacity, including the construction of additional reactors by 2035.
The announcement has been welcomed by Aura Energy (ASX: AEE, AIM: AURA), which had previously lodged a claim for compensation due to financial losses incurred from the ban. Aura’s Häggån project, one of the world’s largest undeveloped uranium resources, could significantly contribute to Sweden’s nuclear fuel supply if the ban were lifted.
The company is preparing to apply for a processing concession in 2024, signaling optimism for a future where domestic uranium mining is possible, enhancing Sweden’s energy independence and environmental objectives.
District Metals Corp. (TSXV: DMX, OTCQB: DMXCF, FSE: DFPP) was also very pleased with the news. The company owns 100% of the Viken Energy Metals Deposit in Sweden, which, based on total historic mineral resources, is one of the largest deposits of uranium and vanadium in the world.
“District is ready for this transformational decision with our portfolio of properties in Sweden,” District CEO Garrett Ainsworth said in a press release.
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