REG - Aura Energy Limited - Swedish Government inquiry re Uranium mining ban

Aura EnergyAnnouncement

23/12/2024 07:00

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RNS Number : 0922R  Aura Energy Limited  23 December 2024

 

 

                                                                                                                 23 December 2024
Swedish Government inquiry recommends lifting uranium mining ban

Aura Energy Limited (ASX: AEE, AIM: AURA) ('Aura' or the 'Company') is pleased
to provide an update in relation to the Swedish government taking an important
step towards lifting the uranium ban which has been in place since 2018.

In announcing the results of its inquiry into uranium mining on 20th December
2024, the Government of Sweden has taken an important step towards lifting the
ban which has been in place since 2018.

The Government inquiry into uranium mining has recommended that uranium be
regulated as a concession mineral within the Minerals Act. This would allow
deposits containing economic quantities of uranium to be exploited like other
natural resources in the country.

This aligns Sweden's mining legislation with its energy policy that calls for
a substantial expansion of nuclear power. Sweden already generates one third
of the country's electricity from nuclear power but currently relies
completely on imported raw material for nuclear fuel.

Extracting uranium from its substantial endowment of geology which hosts
uranium as a by-product would greatly increase Sweden's energy security. The
Häggån deposit alone could fuel Sweden's existing nuclear reactor fleet for
over three centuries. It would also bring investment, create jobs and generate
exports for the economy.

All parties in the governing coalition have expressed their support to
overturn the current uranium mining ban. The next step in the legislative
process is for the results of the inquiry to be referred for wider
consultation before it is converted into a legislative proposal and brought to
Parliament for consideration. The governing coalition holds a majority of the
seats in Parliament.

Following the inquiry and the referral process, the Government can proceed
with a legislative proposal to Parliament to enact the proposed changes. The
proposed date for legislative changes to come into effect is 1st January
2026.

Aura is pleased to be included in the list of consultation parties for the
uranium inquiry.

Aura Energy Managing Director and Chief Executive Officer, Andrew Grove said:

"This is an important first step for Sweden to continue its path towards low
carbon energy self-sufficiency. Sweden has a rich geological endowment that
can be harnessed to provide zero emissions nuclear power for both its own
domestic use, as well as for export.

Sweden has high environmental standards and a robust permitting system, which
would of course also cover uranium extraction should this proposal be enacted.
Uranium can be mined safely and put to use in support of the transition to
carbon free energy in Sweden, Europe and across the globe. It will also reduce
Sweden's dependence on imported energy sources and release significant value
for Sweden's economy.

This will be of special importance now given the Europen Union's critical raw
material act legislation. Our polymetallic Häggån resource has the potential
to become a valuable contributor to Sweden's economy, and its contribution
would be enhanced if uranium mining was to be permitted.

We are looking forward to continuing our work with the Swedish government and
community stakeholders to deliver a project that meets Sweden's economic,
social and environmental goals."

The Häggån project is located in the municipality of Berg in the county of
Jämtland. It is a polymetallic resource, and its primary metals and minerals
are vanadium and sulphate of potash, with nickel, molybdenum, uranium and zinc
also present.

Häggån contains approximately 800Mlbs of uranium 1 . Since Sweden uses
2.4Mlbs annually 2 , the resource could meet Sweden's needs for over 300 years
at current usage levels.

Aura Energy's Häggån 2023 Scoping Study 3  outlined its strong economics,
including a base case NPV of between US$380M, and US$1.23B, excluding uranium.
Including uranium lifted the NPV by 37%.

In August 2024, Aura Energy submitted to the Swedish Mining Inspectorate 4 
(an application for a processing concession for Häggån K1). A Swedish
processing concession (exploitation permit) is valid for 25 years.

ENDS

This release has been approved by the Board of Aura Energy Ltd.

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                                 SP Angel Corporate Finance LLP  Tamesis Partners LLP

 Managing Director and CEO

                                            Nominated Adviser               Broker
 Aura Energy Limited

 grove@auraee.com (mailto:grove@auraee.com)   David Hignell                   Charlie Bendon

 +61 414 011 383

                                            Adam Cowl                       Richard Greenfield

                                              Devik Mehta                     +44 203 882 2868

                                              +44 203 470 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 2024 FEED
Study 5  and Production Target Update 6  demonstrates Tiris to be a near-term
low-cost uranium mine producing 2Mlbs pa U(3)O(8) over a 25-year mine life
with excellent economics and optionality to expand and to accommodate future
exploration success.

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 2.5Bt vanadium, sulphate of potash (SOP) 7 
and uranium 8  resource. Utilising only 3% of the resource, a 2023 Scoping
Study 9  outlined a 17-year mine life based on mining 3.5Mtpa.

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 or guarantee that the anticipated
results, performance or achievements expressed or implied in those
forward-looking statements will be achieved.

The Company has concluded that it has a reasonable basis for providing the
forward-looking statements and production targets included in this
announcement and that material assumptions remain unchanged. The detailed
reasons for this conclusion are outlined throughout this announcement, and in
the ASX Releases:

1.     29 March 2023 - Tiris Uranium Project Enhanced Definitive
Feasibility Study

2.     28 February 2024 - Aura's Tiris FEED Study returns Excellent
Economics

3.     11 Sep 2024 - Updated Production Target Improves Economics at Tiris

4.     5 September 2023 - Scoping Study Confirms Scale and Optionality of
Häggån

The Company confirms that it is not aware of any new information materially
affecting the information included in the ASX and AIM announcements:

1.     12 June 2024 - Aura increases Tiris Mineral Resources by 55% to
91.3Mlbs U(3)O(8)

2.     16 Dec 2024 - Substantial increase in Tiris Uranium Project Ore
Reserves

3.     22 Aug 2012 - Outstanding Häggån Uranium Resource expands to 800
million pounds

4.     10 Oct 2019 - Häggån Battery Metal Project Resource Upgrade
Estimate

All material assumptions and technical parameters underpinning the Häggån
Project Mineral Resources Estimates continue to apply. The Company confirms
that the form and context in which the Competent Person's findings are
presented have not been materially modified from the original market
announcement.

 

 1  ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource
expands to 800 million pounds

 2  Source World Nuclear Association, data for 2024

 3  ASX and AIM Release: 5 Sep 2023 - Häggån Scoping Study Confirms the
Scale and Optionality of Aura's Critical Minerals Project in Sweden

 4  ASX and AIM Release: 6 Sept 2024 - Häggån Project Exploitation Permit
application submitted

 5  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 6  ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris

 7  ASX and AIM Release: 10 Oct 2019 - Häggån Battery Metal Project Resource
Upgrade Estimate

 8  ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource
expands to 800 million pounds

 9  ASX and AIM Release: 5 Sept 2023 - Scoping Study Confirms Scale and
Optionality of Häggån

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