Tumas uranium project awaits price surge
The Tumas uranium project in Namibia is advancing toward a 30-year future, with Deep Yellow Limited refining its plans through a 2025 feasibility study and robust financing, though a final go-ahead hinges on stronger uranium prices to fuel this ambitious greenfield venture.Deep Yellow, the project’s developer, recently announced a definitive feasibility study (DFS) for 2025, with a frozen scope, capital expenditure (CAPEX), and schedule now established.
However, the final investment decision (FID) has been deferred until uranium prices reach a level sufficient to justify the greenfield project’s development, a move reflecting strategic prudence in a volatile market.
An updated mineral resource estimate (MRE) also indicated a longer life of mine (LOM), further raising the profile of the proposed mining development.
“A newly updated ore reserve estimate has extended the project’s life of mine (LOM) to 30 years, up from the previous 22.5 years, bolstered by an upgraded MRE. This extension underscores Tumas’ potential to deliver long-term economic benefits to Namibia. The project’s financial backing is also progressing, with a mandated bank advancing project financing arrangements, positioning Tumas for a strong capital foundation,” Deep Yellow said.
Development is proceeding in a staged approach to minimise risks and optimise efficiency, Deep Yellow said.
“Detailed engineering continues in 2025, with efforts focused on refining CAPEX, operational expenditure (OPEX), and the project schedule. Early works on non-process infrastructure are slated for the second half of 2025, alongside the finalization of critical water and power supply agreements. A 6-year mining plan has been completed with grade control finalised in the second quarter of 2025, further de-risking the project,” it said.
Deep Yellow said the project was advantageously situated close to critical logistics infrastructure.
“Tumas benefits from its proximity to world-class infrastructure. Located just 80 kilometres (km) from the Port of Walvis Bay , and 75 km from Walvis Bay International Airport, the project is well-positioned for logistics and accessibility.”
Highlighting the project’s suitability, Deep Yellow said power needs will be met through a dedicated 25 km 220 kV power line linked to the Namibian grid, supplemented by a 20 MW solar farm operated by a third-party independent power producer. “Water supply will be secured via a 65 km pipeline delivering 3 gigaliters per year,” Deep Yellow said.
Deep Yellow said it had sufficient financial capacity to fund the development of the Tumas project.
“With a strong financial position of A$227 million in cash, Deep Yellow is well-equipped to initiate development and pursue its growth strategy,” it said.
The FID, expected in late 2025, hinges on uranium price improvements to incentivise the project’s next phase.