Investment decision in Tumas uranium project delayed

Australian-listed Deep Yellow Limited has delayed the final investment decision (FID) of its flagship Tumas Namibian uranium project until early March next year.The FID was expected in the final quarter of this year, but was postponed due to delayed costings and quotes for equipment and construction, as well as further projectoptimisation, Deep Yellow said yesterday.“This delay is considered minor in the scheme of this project, and it is also important we make our final decisions based on the best, most up-to-date information and in the best interests of our shareholders,” Deep Yellow managing director John Borshoff said.Reserve upgrade“Our ongoing detailed work continues to reinforce Tumas as an exceptional project and development opportunity,” Borshoff added.On Wednesday, Deep Yellow announced a major ore reserve upgrade, confirming the upside potential of the Tumas Project. The project now boasts a reserve with a 30-year life-of-mine expectancy with potential toincrease this by a further 5 to 10 years with further work in the coming years.Construction on Tumas is set to start in 2026. MarketWhile an FID is expected by early March 2025, the Deep Yellow’s board has determined that the full-scale construction phase of the Tumas project will be strategically aligned with market conditions, particularly the uranium price. Deep Yellow’s leadership is skeptical about analysts' forecasts predicting significant increases in uranium supply, arguing that these projections are overly optimistic in the short, medium and long term.“There is significant doubt regarding the pace of greenfield uranium developments over the next decade,” said Deep Yellow. PriceThe rapidly growing demand for commercial nuclear power, coupled with limited greenfield uranium deposits, means the current uranium price cannot justify new development projects. The price will need to increase to incentivize new production and ensure the stability of the industry, Deep Yellow said.The company will continue to monitor market conditions and will only move forward with the execution phase of Tumas once it believes that uranium prices are at a sustainable level that ensures a strong return for shareholders, it added.“We are committed to developing the Tumas project at the right time, in the right market conditions, to maximise value for our shareholders,” Deep Yellow said.

Investment decision in Tumas uranium project delayed

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Republikein 2025-06-16

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Investment decision in Tumas uranium project delayed

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