Europe Faces Energy Crisis As Aussie-Listed Aura Gets Swedish Uranium Wheels Turning
As Europe wakes up to a new energy paradigm and the fresh potential of nuclear power, Aura Energy is driving progress at its Häggån uranium project in Sweden.
Europe is currently experiencing unprecedented pressure on energy security with the combined pressures of decarbonisation and the geopolitical crisis in the Ukraine. Local supply of energy metals, such as uranium and battery metals, such as vanadium is becoming increasingly important, a trend which is not likely to change in the near term.
Aura Energy’s (ASX:AEE) Häggån Project has an Inferred resource of 800 million pounds of uranium oxide and a high-grade zone of 800 million pounds of vanadium pentoxide, alongside other important battery metals including nickel, zinc and molybdenum.
While the resource is not yet JORC 2012 compliant, having been measured under the JORC Code 2004, the information on which the resource was based has not materially changed one jot.
Sweden and Mauritania
Aura’s main focus is on the development of the Tiris Uranium Project in Mauritania, but recent positive steps in the EU have led it to engage top consultants Diplomat Communications to liaise with the Swedish government and relevant stakeholders.
The move comes as Europe focuses in on supply chain security for raw materials, including uranium and vanadium, as the union grapples with record electricity prices and a 40% energy vacuum as sanctions switch off Russian-originated oil and gas.
In January 2022, the EU proposed a green taxonomy for nuclear power, allowing all states to provide a green label for ESG investment in Europe in a bid to help the continent to meet its Net Zero 2050 targets.
The current geopolitical turmoil has also led Swedish energy giant Vattenfall AB to suspend current orders of uranium and nuclear fuel from Russia.
Aura chairman Phil Mitchell said the company believed Häggån could ultimately be a project which supported Sweden’s energy transition.
“We are very pleased to have appointed Diplomat Communications to work alongside Aura to assist in representing the company in liaising with the Swedish Government,” he said.
“The Häggån Project represents a significant opportunity for Aura and we look forward to working with all parties to find a viable outcome to advance the project to production.”
A unique opportunity
Aura has made clear that it sees Häggån as a unique opportunity to support supply security in Sweden for battery metals and uranium through independent operations.
Sweden ranks 22nd in the world for nations supplying battery metals and has made significant investments in battery manufacture.
Just this week, lithium-ion battery startup Northvolt announced its intention to build a new battery materials factory in Sweden – the Nordic nation’s third battery production facility.
On the uranium front, the recently proposed green taxonomy for nuclear power is a move designed to accelerate the low-carbon transition away from coal.
Lots of nuclear plants, no uranium
There are currently six nuclear plants in operation in Sweden, providing around 40% of the nation’s total power mix. Despite this, uranium mining has been banned in the country since August 2018.
However recent events, including those in Russia which led Vattenfall to suspend its uranium orders from the region, highlight the relevance of supply security and have contributed to Aura’s appointment of Diplomat Communications.
The company hopes to be able to provide locally sourced uranium for Sweden’s plants and the export market from Häggån.
“The company also aims to work alongside Diplomat Communications and the Swedish Government to further advance the project as the global demand for battery metals and carbon free energy continues to increase, supporting Sweden’s energy strategy,” Aura said in a statement.
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