Theo Botoulas

THE stage is set for the first major investment in a uranium deposit in South Africa. It comes after decades of sector inactivity and an agreement in 2024 for UK-listed Neo Energy Metals to buy Sibanye-Stillwater’s Beisa project and Beatrix 4 shaft in the Free State. What’s required for the R500m shares and cash deal to go through is the no small matter of South African government approval, known locally as a ‘Section 11’ permit – a reference to the clause governing change of control in the country’s mining legislation. The application has been in the pipeline for a year. Let’s hope mines minister Gwede Mantashe reaches for his pen soon.

Led by mining veteran Theo Botoulas since May 2025, Neo Energy is planning a 17-year-life first phase mine accessed through the Beatrix 4 shaft, which was initially sunk for uranium but repurposed to mine gold. Beisa will be low cost and initially access 350 metres to 1,000m level resources containing an estimated 10 million pounds of uranium and 600,000 ounces of gold, says Botoulas. Before that happens, project finance is required, which will most likely involve an offtake agreement. There should be no shortage of interest. The majority of uranium supply is through long-term contract, but spot prices – currently ranging from $70 to $80/lb – indicate that there’s a scarcity of new supply, especially in the West.

Russia controls 44% of the world’s uranium enrichment capacity and supplies about 35% of US nuclear fuel imports. While Beisa is Neo Energy’s priority, it has options elsewhere in the portfolio, including Beisa North and Beisa South projects, first explored in 1936 and situated near Beatrix. There’s also the Henkries Uranium Project in the Northern Cape.