District Metals Corp has hailed Swedish media reports that a majority within the Swedish parliament is likely to support the exploration and mining of uranium in the country, ending a moratorium in place since 2018.
On January 19, 2023, The Liberals, part of the ruling coalition, voted internally to support the lifting of the moratorium. According to media reports, a motion from the Moderate Party, to which Prime Minister Kristersson belongs, to remove the moratorium is expected to go to a parliamentary vote in March 2023.
In a statement, District Garrett Ainsworth said: "We are very pleased with the recent media reports out of Sweden that a majority by the newly formed government has reached a consensus to remove the moratorium on uranium mining.”
“The implications related to this decision are potentially transformational for District Metals given our recent mineral license application of Viken nr 101, which covers most of the vanadium-uranium-molybdenum-nickel-copper-zinc Viken Deposit in Sweden,” he added.
Ainsworth noted that the polymetallic Viken Deposit is “amongst the largest” by total historic mineral resources of vanadium and uranium in the world.
Sweden's new government has indicated strong support for nuclear power and energy security. The new center-right coalition government formed in October 2022 has indicated support for expanding nuclear power in Sweden.
There are currently six operating nuclear reactors in Sweden supplying about 40% of the country's electricity, and the new government has called for the possible restart of Ringhals reactor units 1 and 2, as well as to prepare for the construction of new reactors.
The moratorium on the exploration and mining of uranium in Sweden came into effect on August 1, 2018. The new center-right coalition government in Sweden put forth a motion on November 22, 2022, to revert the Minerals Act back to its original wording before August 1, 2018, so that uranium mining would be possible again in the country.
Meanwhile, District’s flagship Tomtebo property is in the Bergslagen Mining District of south-central Sweden. Tomtebo comprises 5,144 hectares and is situated between the historic Falun Mine and Boliden's Garpenberg Mine.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive