Uranium prices skyrocket
International uranium prices have soared, with Business Insider's Markets Insider app indicating the price at US$80.85 per pound of triuranium octoxide (U308) earlier this week.
According to various economic sources, this is the first time in the past 15 years that the uranium price has climbed so high.
According to the mines and energy ministry, this development is a positive sign for Namibia's uranium mining industry.
"The Langer Heinrich mine, which was under care and maintenance, is preparing to resume mining operations next year," acting executive director of mines and energy, Bryan Eiseb, said in response to queries from Namibia Media Holdings this week.
"With the uranium price recently surpassing US$75 per pound, one can expect that low-grade uranium projects owned by companies such as Bannerman Mining Resources Namibia and Deep Yellow will become more economically viable, hopefully leading to the opening of new uranium mines in the next two to three years," he said.
"The Orano mine may also resume operations," he added.
Bannerman's operational report for the quarter ending 30 September, indicated that its Etango project is on schedule – specifically concerning engineering and design – to make a final investment decision in the first half of next year.
Licence overview
According to Eiseb, there are currently eight mining licences granted for uranium mining in Namibia. However, only Swakop Uranium's massive Husab mine and the Rössing mine are currently in production. In both, the majority of shares are owned by Chinese-owned state enterprises.
Deep Yellow, like Bannerman, is listed on the Australian stock exchange and is also progressing well with its Tumas project.
According to Eiseb, there are currently 115 exploration licences granted for uranium, while the ministry has received 173 applications for exclusive exploration licences targeting uranium as one of the key minerals. However, he noted that momentum for uranium exploration has not changed much from previous years.
Reaping benefits
In terms of Namibia's benefit, Eiseb stated that all uranium mining companies always pay royalties to the government at the prescribed rate of 3%.
The royalties collected from uranium mines stood at N$206 million by August 2023, compared to a total of N$308 million for 2022.
"It's important to note that the amount of royalties depends on the volumes sold and the prevailing market principles. In addition, a dividend of N$3.3 million has been announced and paid out during November 2023," Eiseb explained.
The government earns royalties, dividends, fees and taxes from uranium production.
"The Langer Heinrich uranium mine is expected to resume production during the first quarter of 2024. No other new mining developments are anticipated, although there are advanced uranium projects such as Bannerman Energy and Reptile Uranium that will contribute to the growth of the uranium sector in the near future," he added.
– [email protected]
According to various economic sources, this is the first time in the past 15 years that the uranium price has climbed so high.
According to the mines and energy ministry, this development is a positive sign for Namibia's uranium mining industry.
"The Langer Heinrich mine, which was under care and maintenance, is preparing to resume mining operations next year," acting executive director of mines and energy, Bryan Eiseb, said in response to queries from Namibia Media Holdings this week.
"With the uranium price recently surpassing US$75 per pound, one can expect that low-grade uranium projects owned by companies such as Bannerman Mining Resources Namibia and Deep Yellow will become more economically viable, hopefully leading to the opening of new uranium mines in the next two to three years," he said.
"The Orano mine may also resume operations," he added.
Bannerman's operational report for the quarter ending 30 September, indicated that its Etango project is on schedule – specifically concerning engineering and design – to make a final investment decision in the first half of next year.
Licence overview
According to Eiseb, there are currently eight mining licences granted for uranium mining in Namibia. However, only Swakop Uranium's massive Husab mine and the Rössing mine are currently in production. In both, the majority of shares are owned by Chinese-owned state enterprises.
Deep Yellow, like Bannerman, is listed on the Australian stock exchange and is also progressing well with its Tumas project.
According to Eiseb, there are currently 115 exploration licences granted for uranium, while the ministry has received 173 applications for exclusive exploration licences targeting uranium as one of the key minerals. However, he noted that momentum for uranium exploration has not changed much from previous years.
Reaping benefits
In terms of Namibia's benefit, Eiseb stated that all uranium mining companies always pay royalties to the government at the prescribed rate of 3%.
The royalties collected from uranium mines stood at N$206 million by August 2023, compared to a total of N$308 million for 2022.
"It's important to note that the amount of royalties depends on the volumes sold and the prevailing market principles. In addition, a dividend of N$3.3 million has been announced and paid out during November 2023," Eiseb explained.
The government earns royalties, dividends, fees and taxes from uranium production.
"The Langer Heinrich uranium mine is expected to resume production during the first quarter of 2024. No other new mining developments are anticipated, although there are advanced uranium projects such as Bannerman Energy and Reptile Uranium that will contribute to the growth of the uranium sector in the near future," he added.
– [email protected]
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