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Aura Energy Ltd (ASX:AEE) has formally submitted an exploitation permit application to the Swedish Mining Inspectorate for the Häggån K no 1 concession and a new exploration application for Häggån no 2, which will encompass areas from the original no 1 concession.
The Häggån Project, situated in central Sweden, features a substantial polymetallic mineral resource of 2 billion tonnes, encompassing vanadium, potassium, nickel, zinc, molybdenum, and uranium. These minerals are crucial to Europe's energy transition and contribute to food and energy security.
Supporting Critical Mineral Strategy
Andrew Grove, Managing Director and CEO of Aura Energy, highlighted that the exploitation permit application process has reinforced key aspects of the Häggån project, particularly regarding environmental and social impacts. “Sweden is a leader in mining and mineral resources within the EU, and its minerals strategy is set to enhance this position through sustainable resource management,” Grove said.
The new exploration permit would enable Aura to conduct further environmental and social impact studies, with the aim of developing a profitable, sustainable mine in full compliance with Swedish regulations.
Lifting the Nuclear Ban
Grove also noted the Swedish Government’s recognition of nuclear power’s importance in achieving its clean energy goals. “We support the government's efforts to lift the ban on uranium extraction in a socially and environmentally responsible manner,” he stated. The Häggån polymetallic ore body contains significant uranium resources, estimated at over 800 million pounds U3O8, which were not included in the scoping study or exploitation application due to the current mining ban.
Sweden has had a ban on uranium mining since 2018, despite operating six nuclear power reactors that meet approximately a third of its energy needs. “To meet the EU's climate-neutral goals, access to sustainable metals and minerals is essential,” said Swedish Minister for Climate and Environment Romina Pourmokhtari. “We need to utilize our uranium resources rather than disregarding them as waste.”
Powerful Potential Upside
The 2023 Häggån Scoping Study only assesses about 3% or 65 million tonnes of the total 2 billion tonnes mineral resource. Aura Energy anticipates that further drilling will enhance the resource's viability and extend the project's lifespan, thereby improving the project's economic outlook.
The potential addition of uranium mining could significantly boost the project's net present value (NPV). According to Aura, incorporating uranium mining could increase Häggån’s NPV by 37% at a uranium price of US$65 per pound of U3O8. As of September 4, uranium's spot price was US$79.27, reflecting a 31% increase over the past year.
