(Ecofin Agency) - Namibia and Niger are Africa’s two biggest uranium producers. With uranium prices going up, the uranium industry in these countries is set to flourish, and new mines could be commissioned.

Deep Yellow is raising AU$220 million (about US$145 million) to advance its Tumas uranium project in Namibia. The firm disclosed the operation on March 11, according to sources consulted by Ecofin Agency.

According to the source, the funds will be raised through a two-tranche placement for which the company has secured commitments from both new and existing Australian and international investors. Part of the proceeds from the placement will be used to finance the start of construction once the final investment decision is made. Another portion will be allocated to negotiate a loan for the project and fund exploration work on other company assets, including another Namibian project (Omohola).

"The significant interest in the placement and the amount of capital raised represent a major milestone in Deep Yellow's development, allowing us to significantly advance the Tumas project and bring a significant conventional greenfield uranium project into production within the next three years," commented Deep Yellow CEO John Borshoff.

Uranium prices on the rise 

It is worth noting that Deep Yellow obtained a 20-year mining license for the Tumas project in December 2023. If the final investment decision is made as expected in the third quarter of 2024, it would be a decisive step for Deep Yellow. The firm would subsequently start developing its new uranium mine. Leveraging an initial investment of $360 million, the mine could produce 3.6 million pounds annually over 22 years. 

Another point worth noting is the ongoing surge in global uranium prices (they crossed $100 in January). Also, long-term demand is set to increase.

Besides Namibia, Niger and Mauritania are the other African uranium producers that benefit from the current market conditions. Niger with its Dasa and Madaouela projects–the first is scheduled for commissioning in 2026. And Mauritania with its Tiris project. 

The two largest uranium-producing countries on the continent remain Namibia and Niger.

Louis-Nino Kansoun