Namibia, renowned as the world’s third-largest producer of uranium, accounting for 11% of global supply, is currently witnessing a significant uptick in exploration activity and acquisitions within its uranium mining sector.
According to the Chamber of Mines, Namibia’s uranium sub-sector is expected to significantly contribute to the country’s economic growth in 2024.
“Increased production in 2024, combined with growing output in the medium-term from new uranium mines, will translate into increased foreign exchange earnings for the country and increased government revenue through royalties, corporate tax and export levies,” CEO of the Chamber of Mines Veston Malango said.
Companies from across the world, including Australia, Canada, Russia, and beyond, are increasingly investing in Namibia’s uranium sector, drawn by the country’s rich potential and favourable market conditions.
Bannerman Energy’s scoping study on the Etango Uranium Project reveals promising potential, with a projected 27-year mine life and expansion phases.
“Key findings from the Scoping Study highlight the potential of both Etango-XP and Etango XT,” said Brandon Munro, Executive Chairman of Bannerman Energy.
Puranium Energy, a Toronto-based company, secured N$19.9 million to advance its uranium exploration efforts in Namibia.
“The transaction is in line with the Canadian Securities Exchange (CSE) policies and subject to a four-month-and-one-day hold period,” said Jason Bagg, President and CEO of Puranium.
The Canadian mining company Madison Metals’ renewal of its exclusive prospecting license (EPL) underscores the continued interest in Namibia’s uranium-rich regions.
“EPL 7011 bolsters Madison’s strategic land positioning, and there is a National Instrument (NI) 43-101 technical report affirming the licence’s potential for uranium deposits,” Duane Parnham, Chairperson and CEO of Madison Metals said.
Snow Lake Energy initiated its 2024 exploration program on the Engo Valley Uranium Project, focusing on data compilation and targeted exploration.
“Our first step of compiling all of the historical exploration data will greatly assist us in designing subsequent phases of exploration and targeting our initial drill program,”said Frank Wheatley, CEO of Snow Lake Energy.
Australia-based uranium developer Deep Yellow secured binding commitments to raise N$2.7 billion through a placement to develop its Tumas Project in Namibia.
“We are very pleased with the success of the placement raising A$220 million, buoyed by the overwhelming level of interest to participate,” said John Borshoff, Managing Director and CEO of Deep Yellow.
Rosatom’s plans to commence uranium mining operations in Namibia by 2029 represent a significant investment in the country’s mining industry.
“The project had already made a substantial impact on the Namibian economy, with over N$880 million (US$50 million) already invested in the country since its initiation,” stated Kirill Egorov-Kirillov, the Wings Project Manager.
Oar Resources Limited’s planned acquisition of exploration licenses in Namibia signifies strategic diversification and underscores the country’s appeal for uranium-focused exploration.
“We have signed a binding agreement to acquire a 100% interest in two EPLs in the world-class Erongo region of Namibia, known for its large active uranium deposits. The EPLs are currently in the application phase but are expected to be granted in the near term” said Paul Stephen, CEO of Oar Resources.
Stephen prided Namibia as a world-class uranium mining region. The Chamber of Mines said there is a material recovery in the uranium price, which has breached the US$100/lb mark and is currently trading at US$106/lb, a price move that market analysts have been predicting since 2013.
