Sweden’s Uranium Ban Lift Could Reshape Energy Security—Aura Energy Leads Charge

Sweden’s Uranium Policy Shift

In a significant development for the uranium sector, the Swedish government is advancing legislation to lift its longstanding ban on uranium mining. This move aligns with Sweden’s ambition to double its nuclear power capacity, which currently supplies about one-third of the country’s electricity but relies entirely on imported uranium. The proposed policy change, expected to be presented to Parliament for approval in 2025, aims to enhance energy security, stimulate economic growth, and create jobs by tapping into Sweden’s substantial uranium resources.

Aura Energy’s Strategic Collaboration

Aura Energy Limited (ASX – AEE) has positioned itself at the forefront of this transition by entering a strategic collaboration agreement with Neu Horizon Uranium Ltd, an Australian-based company focused on advancing uranium projects in Sweden. Aura will take a minority stake in Neu Horizon through a A$100,000 investment, signaling its commitment to the Swedish uranium sector. The partnership will focus on joint government and regulatory engagement, technical cooperation on uranium extraction and processing, and administrative efficiencies.

Leveraging World-Class Uranium Assets

Aura Energy’s Häggån deposit is a cornerstone of this collaboration. With an inferred mineral resource of 800 million pounds of uranium oxide (U3O8), Häggån ranks as the fourth largest uranium deposit globally. This resource alone dwarfs Sweden’s current uranium consumption, estimated at 3.3 million pounds annually. Meanwhile, Neu Horizon brings a portfolio of promising projects, including the Vilhelmina Shale-Hosted Uranium Project, Ravenberget Shear-Hosted Uranium Project, and Gillberget Shear-Hosted Uranium Project, all located in mineral-rich regions of Sweden and featuring high-grade uranium mineralisation alongside critical battery metals.

Market and Energy Security Implications

The collaboration comes at a time when Sweden is not only seeking to secure its domestic uranium supply but also positioning itself as a future exporter to the European Union, supporting broader nuclear energy expansion across Europe. By aligning mining policy with energy objectives, Sweden could become a key player in the global uranium market, reducing reliance on imports and contributing to the EU’s decarbonisation goals.

Looking Ahead

Neu Horizon plans to apply modern exploration techniques to its projects and aims for an ASX listing by late 2025 or early 2026, potentially unlocking further value. Aura Energy’s leadership sees this collaboration as a pivotal step in transitioning from uranium exploration to production, capitalising on the growing demand for nuclear power as part of the global clean energy transition.