Chamwe Kaira
Deep Yellow Limited is preparing to begin mining at its Tumas Project in the Erongo Region by late 2026.
The company is finalising negotiations with prequalified mining contractors before awarding contracts and starting operations.
The update follows progress on early infrastructure works and detailed engineering at Tumas, located within ML237.
In April, Deep Yellow delayed its Final Investment Decision (FID), citing uranium prices that did not offer sufficient value to shareholders or justify new greenfield development. The company now says the rise in uranium prices since then has confirmed the logic behind that decision.
Despite the FID delay, Deep Yellow continues to advance the project’s development. This includes work on engineering, procurement, site preparation, operational readiness, and financing.
“The decision to defer FID on Tumas was a strategic and value-driven call, and one that has been vindicated by the subsequent strengthening of the uranium market,” said Managing Director and CEO John Borshoff.
“We made the best decision for the company and our shareholders, positioning ourselves to fully capitalise on Tumas in a stronger market. In the meantime, we continue to make solid progress across all key areas of project development.”
The company said contracts for key utilities and related infrastructure are at an advanced stage. Early works at the site have largely been completed, and the operational readiness plan is progressing toward pre-production mining, process plant commissioning, and a ramp-up to full production.
NamPower and NamWater have issued draft supply offers for power and water. A Build, Own, Operate, and Transfer (BOOT) solar array will supply at least 30% of the project’s power needs. The solar component is expected to reduce both electricity costs and the project’s carbon footprint.
Supply contracts with NamPower and NamWater are expected to be finalised within the current quarter. The project will build infrastructure for both utilities and later transfer it to the respective state entities for operation and maintenance.
These contracts are being handled by locally based engineering firms.
