Considered by many as one of the safest and most politically stable mining destinations in Africa, Namibia is once again proving to be a world-class place to hunt for and develop new uranium reserves.
The country has two significant new projects closing in on development approvals, with new life recently breathed into one of the world’s largest uranium mines.
Major Uranium Producer
According to the World Nuclear Association, Namibia’s uranium mines can provide 10% of the world mining output.
The country’s uranium industry kicked off when the energy metal was discovered in the Namib Desert in 1928, however, it was not until intensive exploration got under way in the late 1950s that much interest was shown in Rössing.
Rio Tinto discovered numerous uranium occurrences and in 1966 took the rights over the low-grade Rössing deposit, 65km inland from Swakopmund.
Two other significant deposits found in early exploration were Trekkopje, a calcrete deposit 80km northeast of Swakopmund near Rössing, and Langer Heinrich, a calcrete deposit discovered in 1973 by Gencor, 80km inland from Walvis Bay and 50km southeast of Rössing.
The uranium industry is a major export earner and supplier of energy in Namibia, and there is strong government support for expanding uranium mining.
Bannerman on Target at Etango-8
Bannerman Energy Ltd (ASX: BMN) continues to progress Front End Engineering and Design (FEED) for the 8Mtpa development of its flagship Etango Uranium Project in Namibia (Etango-8).
The project is located in the Erongo region of Namibia, 30km southeast of Swakopmund. It possesses a world class uranium mineral resource endowment of 207Mlbs of contained U3O8 (100ppm U308 cut-off).
Bannerman recently reported that FEED engineering work is progressing to schedule, and additional planned metallurgical test work identified in the DFS on the ion-exchange circuit taking place on site in April.
The 3D modelling of the plant has commenced. The additional geotechnical investigation of the mining area has been completed and pit design optimization is on track. The in-country infrastructure design is also on track with the tendering of access road construction ongoing, and tender for temporary water to follow in April. The design of temporary power supply, permanent water supply line, and finalization of acid storage are also in progress.
Parallel contract offtake and project finance workstreams for Etango-8 are also in progress, as previously announced.
The Etango Mining Licence application was submitted to the Ministry of Mines and Energy (MME) in August 2022. Following submission of the DFS in December 2022, Bannerman has been working with the MME towards targeted grant of the ML during mid-CY2023.
These activities are advancing Etango-8 towards, uranium market permitting, a targeted positive Final Investment Decision during H2 CY2023. Construction of the Etango-8 Project is expected to take approximately 34 months.
“FEED workstreams are progressing to plan, set alongside the offtake and project finance processes that were commenced last year,” managing director and CEO, Brandon Munro, said.
“The business also continues to build out capability in planned readiness for project development and operation. We are very pleased to have added further senior expertise and horsepower to the Bannerman operations and corporate teams across recent months.”
“While recent global macroeconomic uncertainty has created greater equity market volatility, we continue to see a highly constructive market for uranium over coming months and years.”
“The momentum towards fuller community and governmental understanding of nuclear’s critical role in global decarbonization initiatives continues to build. Against that backdrop, is a nuclear fuel market that is also progressively tightening with further reactor builds, restarts and life extensions.”
Robust DFS Boosts Deep Yellow’s Tumas Confidence
Deep Yellow Limited (ASX: DYL) is confident that its Tumas Project in Namibia has the potential to be a world-class uranium operation, delivering strong returns to shareholders following the completion of a robust Definitive Feasibility Study (DFS).
Strong results from the DFS included:
- Treating 4.15Mt/a to produce up to 3.6Mlb/a U3O8 (uranium) and 1.15Mlb V2O5 (vanadium by-product)
- Project Life of Mine of 22.25 years based on existing ore reserves, with additional resources likely to increase life to >30-years
The DFS produced robust economics including:
- Key assumptions: uranium price US$65/lb, vanadium price US$7/lb, 90% vanadium payability, discount rate of 8%
- Initial estimated capital cost (CAPEX) US$372M
- Pre-production costs US$48M
- C1 costs of US$34.68/lb
- After-tax project net present value (NPV8) of US$341M
- Internal rate of return (IRR), ungeared, of 19.2%
The DFS identified significant increases in both capital and operating cost unit rates since the release of the Pre-Feasibility Study in 2021 and importantly, despite these negative headwinds, the project economic and production numbers remain solid.
The company has commenced a 9,500m reverse circulation resource drilling programme west of Tumas 3 to expand the current resource into Tumas 3 West and Tumas Central to confirm a >30- year Life of Mine.
An updated mineral resource estimate for the Tumas project is expected in late Q3 2023.
New Life for Historic Rössing Uranium
Rössing Uranium, Namibia’s first commercial uranium mine, has significantly expanded its Life of Mine to 2036.
Rössing started production in 1976 and will be celebrating its 47th year of production this year.
Despite a former Life of Mine of 2025, there had been considerations by previous operators to shut down the project in early 2020.
In 2021, Rössing embarked on a Feasibility Study for the Life of Mine extension to 2036 through the Phase 4 pushback of the existing SJ Pit, fully utilizing the 15-year mining license granted by the Ministry of Mines and Energy in 2021.
The objective of the Life of Mine Feasibility Study was to evaluate and document the technical, practical and economic feasibility to extend the Rössing Uranium Life of Mine beyond 2026, and issue a Feasibility Study Report to inform an investment decision by the Rössing board of directors.
Earlier this year, following the completion of the bankable feasibility study, the Rössing board approved the Life of Mine extension from 2026 to 2036 and the recommended operating model.
This provides Rössing with a new lease of life and translates to the continuation of various macro-economic benefits for its stakeholders.
