Tumas mining project on hold

Deep Yellow has postponed its final investment decision (FID) on the Tumas uranium project in Namibia, citing a dysfunctional global uranium market unable to support new production. Despite the project’s proven viability and robust engineering, MD John Borshoff emphasised that delaying the FID protects shareholder value by awaiting higher uranium prices, driven by rising demand and fragile supply chains. While full-scale development is on hold, the company is advancing infrastructure and engineering to ensure Tumas is ready to launch when market conditions align, Borshoff said. “We are at an extraordinary stage in the uranium supply sector. We have a situation where the long-term uranium market is essentially broken. This is due to more than a decade of sector inactivity, persistently depressed uranium prices, and utility off-take contracting practices which are yet to support the development of greenfields uranium production,” Borshoff said. While the potential for Deep Yellow to operate its proposed Tumas project at the current uranium prices, supply was not expected to meet demand, Borshoff explained. “Although the Tumas Project is economic at current long-term uranium prices, these prices do not reflect or support the enormous amount of production that needs to be brought online to meet expected demand,” he said. While underlying work done had been to demonstrate the longevity of the Tumas project, an FID would always be premised on market conditions, Borshoff explained. “The additional detailed engineering completed in the past three months confirmed Tumas as a robust, long-life project. However, as previously stated, the key element to delivering a FID was always going to be the prevailing uranium market conditions that would justify development of a greenfield uranium project,” Borshoff said. “Deep Yellow will continue to move ahead with early works infrastructure development and detailed engineering, however full-scale project development will be delayed allowing for what the Board believes will be the inevitable improvement in global uranium prices due to increasing demand and the precarious nature of the supply outlook,” Borshoff said. Work done in the meantime also demonstrated the Tumas’ project to advance at the earliest opportunity. “Deep Yellow is in an enviable position having one of the most rigorously evaluated greenfield projects in the world ready to hit the “go” button. The extended detailed engineering and associated studies that have been completed provide even greater confidence of what can be delivered and how,” he said.

Tumas mining project on hold

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Namibian Sun 2025-05-02

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Tumas mining project on hold

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Namibian Sun 2025-05-02

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