Sweden has announced a draft law to lift its ban on uranium mining, a reversal of the 2018 ban, as Europe tries to decrease its reliance on imports for its energy and critical minerals.

The Swedish government will amend the Environmental Code and the Minerals Act to allow the extraction of uranium in the country. The legislative amendments will start on January 1.

Sweden's Climate and Environment Minister Romina Pourmokhtari confirmed the legislative changes would remove prohibitions in the Environmental Code against granting permits for uranium mining and processing facilities. The amendments will also classify uranium as a concession mineral under the country's Minerals Act..

“It must be legal to take care of the Swedish uranium that is already out of the ground," Pourmokhtari said. "The Swedish mining and mineral industry is crucial for Sweden, Europe, and for the climate."

The European Union (EU) and the US have indicated that they want to reduce their dependence on imports of critical materials and rare earths, citing national security. Since 2024, China has halted exports of antimony, a crucial ingredient in semiconductors, solar panels, and munitions, to the EU and the US.

Environmental Concerns Spurred Ban on Uranium Mining

The Swedish government implemented the uranium mining ban in August 2018 when parliament passed amendments to the Environmental Code. The code effectively halted all new exploration and mining permits.

The prohibition emerged from environmental concerns about soil and water contamination risks. In addition, high extraction costs made operations economically unviable at the time.

Coalition governments between the Greens and Social Democrats favored renewable energy sources. They viewed nuclear power as having no place in Sweden’s energy mix.

Environmental groups and municipalities like Berg (Jämtland, north-west Sweden) raised concerns about the long-term ecological impact of uranium extraction. The groups expressed concern about the effects on Sweden’s pristine natural landscapes.

Transforming Sweden’s Nuclear Landscape

Prime Minister Ulf Kristersson’s right-wing coalition government has committed to a massive expansion of nuclear capacity. They have targeted production equivalent to two additional reactors by 2035 and a “massive expansion” by 2045.

The government removed limits on the number of nuclear reactors in operation in November 2023, clearing the way for new construction. Sweden currently operates six nuclear reactors across three sites—Forsmark, Oskarshamn, and Ringhals. They provided 29.1% of electricity generation in 2024, according to International Atomic Energy Agency data.

State-owned power company Vattenfall has already begun preparations for new nuclear facilities, working with US-based GE Vernova (NYSE:GEV) and British company Rolls-Royce SMR. They will select suppliers for small modular reactors (SMR) at the existing Ringhals site, with the company aiming to bring the first SMR online in the early 2030s.

The uranium mining decision directly supports these nuclear ambitions. Sweden holds approximately 27% of Europe’s known uranium resources, according to the Geological Survey of Sweden. Domestic extraction is crucial for long-term energy independence.

Global Miners Position for Swedish Operations

Several international mining companies have expressed interest in developing Swedish uranium resources. Australia’s Aura Energy (OTCPK: AUEEF) owns the Häggån project, which contains an estimated 800 million pounds of uranium oxide.

The project is “one of the largest undeveloped uranium resources globally,” the company said. Aura Energy has partnered with Neu Horizon Uranium Limited to advance Swedish uranium development pending regulatory approval.

Meanwhile, Canada's District Metal (OTCQB:DMXCF) has advanced the Viken deposit in Jämtland. Despite being a low-grade deposit, with an average grade of 0.0079%, the sheer size of over 1.5 billion pounds makes Viken exceptionally rare. Additionally, the deposit has nearly 3 billion pounds of molybdenum and 1.2 billion pounds of nickel.

Importantly, municipalities will retain some influence through planning and building regulations. However, they will no longer be able to block uranium extraction projects outright.

Uranium Spot Prices Retract After 2024 Spike

After a price spike over $100 per pound in early 2024, spot uranium prices have retraced, bottoming around $63 in March.

Spot uranium price, Source: TradingEconomics

Despite the shift in the global demand, European uranium mining remains limited. The EU has relied on imports from Canada and Kazakhstan.

France is the largest European nuclear power consumer, with 56 reactors generating about 70% of its electricity. However, the country now faces challenges in securing uranium supplies.

State-owned Orano has historically relied heavily on uranium from Niger. However, this relationship deteriorated dramatically following Niger’s 2023 military coup.

Global uranium market, Source: mining.com / Nuclear Energy Agency

Niger nationalized Orano’s Somair uranium mine in June 2025, accusing the French company of taking a disproportionate share of production over five decades of operations. The government claimed Orano extracted 86.3% of the uranium produced between 1971 and 2024, despite holding only a 63% stake in the mine.

Meanwhile, Russia capitalized on the fallout, offering to build power plants and develop the sector in the West African Nation.

The ongoing World Nuclear Association symposium in London has clarified the current state of the market. Rampant appetite from data centers is now dictating the energy consumption, leading experts to believe that tripling nuclear capacity by 2050 is the bare minimum required.

However, supply and demand are decoupling. Output from today's deposits could halve between 2030 and 2040, leaving a big gap.

This trend makes Swedish deposits even more lucrative.

Disclaimer:

Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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