Namibia’s position as a global uranium powerhouse is set to strengthen as Deep Yellow Limited advances its flagship Tumas Project toward a critical final investment decision. New details revealed in the company’s quarterly activities report highlight significant progress in engineering, procurement, and site preparation at the Erongo region site, signaling potential transformational economic impact for the country.
With procurement for 92% of the project’s direct capital packages already well-advanced and vendor data secured for long-lead items, Deep Yellow has moved beyond planning into tangible implementation. Contracts for essential power and water utility services – fundamental to any major mining operation in arid Namibia – are in their final negotiation stages with state-owned entities NamPower and NamWater. This infrastructure framework represents more than operational necessity; it embodies a collaborative development model where Deep Yellow builds critical assets before transferring them to national operators, aligning with Namibia’s empowerment-focused legal requirements.
“The early works program preparing the site for major construction is largely complete,” the report states, noting the recent finishing of construction access roads and a new borefield for dust suppression and process water. These developments transform the desert landscape into an active project site, with bulk earthworks at the processing plant location scheduled for completion within the next six months. This physical progress underscores Deep Yellow’s confidence as it advances project financing negotiations with Nedbank, the Mandated Lead Arranger.
Technically, the project demonstrates remarkable maturity. Detailed engineering, led by global firm Ausenco, has achieved 44% weighted progress on the 3D plant model, advancing steadily at 1.5% weekly. Crucially, the process design has reached “approved for construction” status, with flowsheets frozen and critical documents like Process Flow Diagrams and Mass and Energy Balances finalized. This significantly reduces the risk of costly rework during construction. “Detailed engineering is now underway in an informed environment, with little rework likely to be required,” the report confirms, a critical factor for investor confidence.
Perhaps the most extensive undertaking has been the pre-mining grade control drilling. A massive campaign of 3,127 Reverse Circulation holes drilled over 42,848 meters, completed in April 2025, provided unparalleled geological definition. Preliminary analysis confirms the initial Mineral Resource Estimate’s accuracy within the planned open pits. This data is now being integrated into final mine scheduling and tailings storage facility planning, forming the bedrock for negotiations with mining contractors. These talks represent one of the last major hurdles before mining begins.
Environmental stewardship remains central to the project’s development. Deep Yellow conducted intensive hydrogeological investigations east of Tumas 3, drilling 47 monitoring bores and completing 36 pumping tests to map groundwater dynamics near an environmentally sensitive area. Further studies involved excavating trenches to analyze soil moisture and the root systems of the indigenous Salsola plant species. This meticulous approach reflects Namibia’s stringent environmental regulations and Deep Yellow’s commitment to sustainable resource development.
The project’s significance extends beyond corporate metrics. Positioned within Namibia, the world’s second-largest uranium producer, Tumas represents a substantial future contributor to national export revenue and employment. Deep Yellow highlights the advantage of its long-standing Namibian exploration presence, noting that the established operational base and local expertise of its team will ensure a smoother transition to full production. This local integration, combined with partnerships with Namibian engineering contractors for infrastructure, underscores a development model prioritizing in-country capacity building.
Financially, Deep Yellow enters this crucial phase from a position of strength, boasting a robust group cash balance of A$217.4 million at the quarter’s end. This financial buffer provides stability as the company navigates the final stages toward a Final Investment Decision (FID), anticipated in the near term. The positive developments detailed in the report are explicitly aimed at “further de-risking the Tumas Project in preparation for FID.”
The momentum at Tumas coincides with a pivotal moment for the global nuclear energy sector. With nations increasingly recognizing nuclear power as essential for achieving zero-emission targets and providing reliable baseload electricity, demand for ethically sourced uranium is rising. Deep Yellow explicitly positions itself to meet this demand, aiming to become a “globally diversified, Tier-1 uranium company” producing over 10 million pounds annually. The Tumas Project is central to this ambition.
As site preparations conclude, financing negotiations advance, and technical plans solidify, Deep Yellow’s Tumas Project stands on the cusp of transforming Namibia’s uranium landscape. The coming months, focused on finalizing mining contracts and securing the investment decision, will determine whether this promising desert site evolves into one of the world’s next major uranium operations, bringing jobs, infrastructure, and long-term economic value to the Erongo Region and solidifying Namibia’s critical role in the global clean energy transition.