Aura Energy Plans Swedish Uranium Collaboration as Country Makes Progress on Lifting Ban

Aura Energy (ASX:AEE) is planning to enter into a strategic collaboration agreement with Neu Horizon Uranium following discussions on overturning the uranium-mining ban in Sweden.

Executives from Aura recently visited Stockholm, where they spoke productively with members of the country's governing coalition about the benefits of lifting the uranium-mining moratorium.

The ban traces back to 2018, when Sweden changed its environmental code to prioritise renewable energy; the government also wanted to reduce reliance on foreign uranium and strengthen domestic and European energy supply.

“Aura welcomes the clear direction of government policy in removing the ban and the strong commitment shown by politicians to attract investment into the country’s mining industry,” Aura said in a June 2 statement.

Discussions about abolishing the ban heightened in December 2024, when a government inquiry concluded that uranium must be classified as a concession mineral under the Minerals Act. According to Aura, the Swedish governing coalition has already expressed its support for overturning the ban, with a referral process underway.

With this progress, Aura is making strategic moves toward advancing its uranium efforts in Sweden.

"Our collaboration with New Horizon Uranium positions us to capitalize on the country’s exceptional geological endowment and support its uranium ambitions,” shared Aura Energy Chair Phil Mitchell.

Through the arrangement, Aura will invest AU$100,000 for a minority stake in Neu Horizon. The agreement also covers collaborations on key initiatives, including joint participation in an investor symposium in Stockholm this year.

Centred in the deal is Aura's Häggån deposit in the province of Jämtland in Central Sweden. Aura says it is one of the largest underdeveloped uranium resources globally, holding 800 million pounds of contained uranium oxide.

For its part, Neu Horizon holds three high-potential uranium projects: the Villhelmina shale-hosted uranium project, the Ravenberget shear-hosted uranium project and the Gillberget shear-hosted uranium project.

“Our collaboration with Aura Energy is a strategic step towards unlocking Sweden’s uranium potential. Sweden holds large quantities of uranium resources, and this collaboration will facilitate progress in regulatory engagement and technical advancements, aligning with (the country’s) vision for energy security,” said Neu Horizon Chair Martin Holland.

Neu Horizon plans to apply modern exploration methods to advance its Swedish assets. While the company remains unlisted, it intends to debut on the ASX sometime in late 2025 or early 2026.

A parliamentary vote is expected on the abolishment of Sweden's uranium ban later this year.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.