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Aura seeks compensation from Sweden over uranium ban

8th November 2019

By: Creamer Media Reporter

     

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Dual-listed Aura Energy is seeking compensation from Sweden for the financial losses that it incurred as a result of the country’s uranium ban that came into effect in August last year.

Aura provided Sweden a written notification under the Energy Charter Treaty (ECT), which is a multilateral legal framework promoting cross-border cooperation in the energy sector, comprising 54 signatories, and which presupposes that signatories respect fundamental legal principles. 

“The ECT provides a level playing field of rules to be observed by all participating governments, thereby mitigating risks associated with energy-related investment and trade,” the company said in an announcement on the stock exchange.

A 2012 scoping study for the Häggån uranium project was based on an inferred resource estimate containing 631-million pounds of uranium oxide (U3O8), as well as nickel and molybdenum. The study calculated a production rate of 7.8-million pounds a year of U3O8.

The project had a net present value, at a 10% discount, of $1.85-billion, based on a U3O8 price of $65/lb.

The Häggån project area also hosts Aura’s battery metals project, which has a mineral resource of two-billion tonnes at an average grade of 0.3% vanadium pentoxide, including an indicated 42-million tonnes of ore, at a 0.2% cutoff grade, averaging 0.35% vanadium pentoxide for a contained 320-million pounds referred to as the Northwest high-grade zone.

The main arguments put forward by proponents of the ban concerned the environmental impacts of uranium exploitation and the risk that radioactive pollution posed to human health.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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