Deep Yellow Limited has announced a delay in the Final Investment Decision (FID) for its flagship Tumas uranium project in Namibia, citing the need for stronger uranium prices to support new project development.
The Australia-listed company said the decision was taken to safeguard shareholder value and ensure the project is well-positioned to benefit from a forecasted upswing in global uranium markets.
Although the full-scale development of the Tumas Project—including the construction of a processing plant—has been paused, the company confirmed that it will continue with early-stage infrastructure work and detailed engineering.
“We are at an extraordinary stage in the uranium supply sector,” said Deep Yellow’s Managing Director, John Borshoff.
“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 offtake contracting practices which are yet to support the development of greenfields uranium production.”
Borshoff noted that while the Tumas Project remains economically viable under current long-term pricing, those prices fall short of what is needed to incentivise the level of new production required to meet growing global demand.
“The Tumas Project is ready to take the next step, but as we have consistently stated, a healthy uranium market is essential. Final approval will be held off until prices provide the sustainable incentives necessary to justify the development of new projects,” he said.
He warned of looming supply shortages in the uranium sector, worsened by delays and underperformance across the industry. However, he emphasised that extensive detailed engineering and associated studies completed to date have only increased the company’s confidence in the project’s potential.
“With limited greenfield uranium deposits available globally over the next decade, Deep Yellow believes a price correction is inevitable,” Borshoff added.
Until such market conditions emerge, Deep Yellow will adopt a phased approach, prioritising preparatory activities while deferring capital-intensive commitments such as plant construction.
“Unless uranium prices increase to appropriate levels, and large amounts of capital become available to the supply sector, these greenfield projects will remain undeveloped,” Borshoff said.
The Tumas Project is located in the Erongo region, Namibia’s uranium hub, and is considered one of the most advanced undeveloped uranium assets globally.
