I had not been really updated on what is happening in Jämtland and the Storsjö area, where two companies have been exploring the Alum shale for uranium and vanadium. So now I took a closer look at what the two companies are currently up to.
The first one, EU Energy Corp seems to have disappeared, changed name or been bought up – I can’t find any information, except for at Bloomberg. The entry there sounds as if the company still exists. But when I checked the website, I got the following message:
The second player in Jämtland, Aura Energy, is still active and has shifted their focus away from uranium to vanadium. Exploration work seems to be finished and there is information that the company plans to start mining within 3-5 years. I wonder how realistic such a scenario is.
Last year, Aura Energy also lodged compensation from the Swedish government, because “Uranium in Sweden was banned effective August 1, 2018 and Aura Energy is seeking compensation for the financial loss resulting from this decision“. According to some media, the company has asked for a compensation amounting to 17 billion Swedish kronor. In the file below, you can read more about Aura Energy‘s compensation claim.
What is pretty interesting in this respect, is that Aura Energy was absolutely aware of the fact that a ban on uranium was in the making. In a referral dated to 22nd December 2017, the company commented on the consequences a ban on uranium will have when it comes to mining in general and for their Häggån project specifically. Many of their comments were in the end also incorporated in the final legal text. So seeking compensation for loosing money because Sweden banned uranium mining is probably a shot in the dark. Below is the referral document in Swedish.
Today I read in the news that discussions had been going on between Aura Energy and the Swedish government. The amount of money claimed by Aura Energy is now not cited as 17 billion SEK, but as 1,8 billion SEK.
The lawyers, who advise the Swedish government, concluded that Sweden had not violated any treaties or laws by banning uranium exploration and mining. Accordingly, there are no conditions for any kind of settlement. Moreover, Aura Energy has no legal right to claim compensation because the treaty to which the company had referred to had been signed but not ratified by Australia.
So far so good.
Another interesting issue is currently whether mining of Alum shale should be banned completely because the shale contains many toxic elements, including high amounts of uranium. This issue had been included in the government’s January agreement. Just a few weeks ago, the Swedish government has appointed a person, who shall analyze unconditionally how the regulatory framework for the extraction of metals and minerals from the Alum shale can be sharpened. It will be very interesting to follow this investigation!
Barbara Wohlfarth 