Earlier this week, Sweden’s Alliance Party ousted the long-time ruling Social Democrats. The coalition party won a Swedish majority in parliament by promising to sell off its holdings in state-controlled companies. Many expect a three-stage privatization over three to five years. During this period, Sweden’s nuclear power paradox may also find a resolution.
Nearly 50 percent of Sweden’s electricity is generated by its ten nuclear reactors. About the same percentage comes from hydroelectricity. Over two decades ago, a referendum decided to decommission Sweden’s 12 nuclear plants by 2010. Only two were retired.
Before the country can close its remaining plants, Swedish law dictates a replacement source must be found, which may be easier said than done. For the time being, a deal cut between members of the coalition party freezes changes in Sweden’s nuclear policy. The Alliance will neither close remaining nuclear reactors nor begin construction of new plants for now.
Ironically, Sweden has the fourth highest per capita use of nuclear energy and is a world leader in spent fuel disposal. Sweden’s mining department has issued special permits to foreign companies to explore for uranium, but presently bans the mining of any uranium discovered. Uranium was last mined in Sweden in 1969 at Ranstad, where 215 tonnes of uranium oxide were extracted from alum shale.
In 2003, Australian geologist Michael Hudson began acquiring uranium properties when uranium prices were still depressed. A recent spot price record high of $53.25/pound makes them more attractive. The properties had been well explored by Sweden’s Geological Survey Unit, showing the potential for a deposit. During the current uranium boom, Hudson’s publicly traded Mawson Resources is now continuing where previous drilling ended in the 1980s.
Hudson believes there is hope, “A major uranium discovery might become reason enough to lift the uranium ban.” His company has 12 exploration permits on the 200-square kilometer Tasjo project, which was previously drilled. According to the World Nuclear Association, Sweden has an estimated 15 percent of the world’s uranium deposits.
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James Finch contributes to StockInterview.com and other publications. StockInterview’s “Investing in the Great Uranium Bull Market” has become the most popular book ever published for uranium mining stock investors. Visit http://www.stockinterview.com
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