(Alliance News) - Aura Energy on Monday noted an inquiry by the Swedish government into the country's uranium extraction ban, which the company believes could greatly increase the value and utility of its Haggan deposit.
Aura Energy is a mineral explorer with projects in Sweden and Mauritania.
On Monday, Aura Energy confirmed the announcement by the Swedish government that it would be launching an inquiry into the 2018 ban on uranium mining. The inquiry will look into the regulatory changes needed to legalise the practice and analyse the potential effects of legalisation.
The inquiry will conclude on May 15, after which the government can choose whether to lift the ban, Aura said.
On Friday, Sweden's Climate Minister Romina Pourmokhtari said: "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."
Aura said that lifting the ban would greatly increase the net present value of its Haggan polymetallic project in central Sweden.
The project contains around 800 million pounds of U308. If allowed to extract this, Aura could increase the NPV of Haggan by 37% and add 14% to its revenue, the company said. Aura currently estimates Haggan's NPV range to be between USD456 million and USD1.31 billion.
Uranium's current spot price is USD101.95 per pound.
The project could also assist Sweden in pursuing climate neutrality and energy independence, Aura said. Sweden currently uses 2.4 million pounds of U308 annually, and Haggan holds the potential to supply "a significant portion" of the country's nuclear fuel requirements.
Aura Chief Executive Officer 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.
"Haggan 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."
Shares in the company were up 2.5% at 12.55 pence each in London on Monday.
By Hugh Cameron, Alliance News reporter
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Aura Egy (AURA)