TWO Australian mining companies, Bannerman Energy and Deep Yellow, are pushing ahead with major uranium projects in Namibia, joining Chinese firms already active there as countries worldwide turn to nuclear power, said Bloomberg News on Thursday.
Both Perth-based companies are benefiting from a recovering uranium market, which slumped after the 2011 Fukushima disaster but is now expected to face widening supply shortages.
Nations including China, the US and India are expanding nuclear power to meet rising electricity demand from population growth, electric vehicles and artificial intelligence, said Bloomberg News. Washington is also seeking to reduce its reliance on enriched uranium imports from Russia, it added.
Bannerman expects to finalise a deal with China National Nuclear Corp before the end of the month to jointly develop its Etango mine. Under the arrangement, the Chinese company would take a 45% stake in the project, contribute up to $321.5m toward construction, and secure rights to 60% of output.
“It’s a defining moment,” said Bannerman CEO Gavin Chamberlain, adding the deal would let the company build the mine without debt.
Namibia is already the world’s third largest uranium producer, behind Kazakhstan and Canada. Chinese companies hold stakes in several of its mines, including Langer Heinrich, Rossing Uranium and the country’s largest, Husab. Deep Yellow’s nearby Tumas project is targeting a final investment decision by the end of the year.
Gabi Schneider of the Namibian Uranium Institute said the improved outlook meant “everyone is now happy to put the shovel in the ground.”
