Uranium Mining in Namibia

Uranium minerals were first recognized in the vicinity of today’s Rössing Mine in 1928. But it was not until Rio Tinto acquired exploration rights in the 1960s, that a number of low-grade ore bodies were discovered along the north side of the rugged Khan valley. After extensive test work, the Rössing Mine was opened in 1976. Following the establishment of the Rössing Mine and a global increase in the demand for uranium for nuclear energy production during the 1960s and 1970s, several other companies started uranium exploration in the central Namib. More uranium deposits were identified, but the uranium price slowly declined and hence no other mines opened up for a long time. This changed early in the new millennium, when increasing uranium prices allowed the opening of the Langer Heinrich Mine, which started production in 2006. It was also around that time that uranium prices reached an all-time high, and extensive exploration was undertaken once again in the western Erongo Region. In 2007, development of the Trekkopje Mine commenced. Assisted by high-resolution airborne geophysical data provided by the Geological Survey of Namibia, Ministry of Mines and Energy, exploration led to the discovery of the Husab ore body, a world-class uranium deposit, now mined at the Husab Mine destined to become one of the World’s largest uranium mines. Due to the lower uranium price following the Fukushima tsunami, the Trekkopje and Langer Heinrich Mines had to be put on care and maintenance in 2013 and 2018 respectively. However, a decision for re-starting the Langer Heinrich Mine was taken in 2022, and production re-commenced in 2024. In addition, the projects of Bannerman Resources and Reptile Mineral Resources & Exploration have now reached
stages, where mining licences have been granted, and mine development has started. Forsys holds a mining licence for its Valencia uranium deposit, and owns the neighbouring Namibplaas uranium resource, for which it also submitted a mining licence application. Elevate Uranium, Headspring Investments, and Zhonghe Resources are in advanced stages of exploration and recovery test work.

The uranium deposits of the central Namib belong to two main types, 77% consist of primary uranium mineralisation hosted by a light-coloured granite, so-called alaskite (Rössing, Husab), and 23% comprise secondary uranium mineralisation in calcrete (Langer Heinrich, Trekkopje).

Uranium-bearing alaskites have intruded the metamorphosed sediments of the Khan and Rössing Formations some 450 million years ago, and are therefore the product of the Pan African Damara Orogeny, in which the high temperature/low pressure southern Central Zone hosts the highest-grade
metamorphism, and consequently the greatest density of granitic intrusions occurs. All of these primary deposits are similar, having formed in structurally prepared sites in granulite facies Neoproterozoic metasediments; spatially proximal to basement-cored domes and inliers, and proximal to the regional peak metamorphism. Contemporary interpretations for the formation of these large, low-grade deposits favour models of low percentage partial melt of weakly-uraniferous source material that interacted with reactive metasediments that encourage the precipitation of uranium oxides and silicates. The uranium repositories in the source rocks include common accessory minerals such as zircon, monazite, biotite, and apatite, that retain or release U, Th, lanthanides, and other incompatible elements into the silicate melt and magmatic fluids. The bulk of the uranium occurs in uraninite [UO2], coffinite [USiO4], and secondary hydrate minerals, predominantly uranophane [Ca(UO2) x 2SiO3 x 7H2O]. A relatively low proportion of U is hosted in the refractory minerals betafite [(Ca,U)2(Ti,Nb,Ta)2O x 6OH] and/or brannerite [UTi2O6].

Secondary mineralisation is the result of weathering of rocks with primary mineralisation. Secondary uranium deposits are found in calcrete which formed in palaeo-valleys of ancient rivers that flowed westwards from the Great Escarpment some 88 to 25 million years ago. The main uranium mineral in calcrete is carnotite [K2(UO2)2(VO4)2 x 3H2O]. It occurs as a thin film in cracks and as a coating on sediment grains in the calcretised fluvial channels. Both mineralisation types are amenable to open cast mining methods. In addition, Karoo sediments in the south of the country have shown potential for uranium in economic concentrations.

Continuing the momentum of 2023, when the U3O8 spot price rose 86% between January and the end of December, uranium started 2024 at US$ 91 per pound. By the 5th of February, the spot price had risen to US$ 105.91, marking a 17-years high, and a 590% increase over the post-Fukushima low of US$ 18.00 in 2016. However, uranium was unable to last at this high level and had retracted to US$ 85 by mid-March. The price continued to consolidate throughout the year, and ended at US$ 72.63. Although this was some 20% lower than the price at the beginning of the year, the uranium spot price remained in historically high territory.

The reasons for this movement in the uranium price were manyfold. The initial upward trajectory at the beginning of the year can be attributed to uranium-mining major Kazatomprom facing a shortage of sulfuric acid, a key component of its uranium extraction and production process. The inability to source sulfuric acid prompted the Kazakhstan-based major to announce that the 2024 production would be significantly lower than expected. But the production challenges of Kazakhstan were not the only supply and demand issues for uranium in 2024. By May, the war in Ukraine had intensified discussions around restrictions for Russian uranium imports to the USA. As tensions increased, US President Joe Biden banned imports of Russian uranium. The USA have historically relied on Russian uranium, notably through the 1993 Megatons to Megawatts program, which repurposed 500 metric tons of Russian nuclear warhead uranium into reactor fuel. In 2022, Russian imports still had made up 12% of US uranium supply.

Furthermore, Niger, the World’s seventh largest uranium producing country, also faced geopolitical strife when fallout from the 2023 military coup affected the country’s uranium sector, adding substantial uncertainty in the uranium space.

European utilities, which are heavily reliant on uranium from Niger, faced heightened risks, underscoring the vulnerability of supply chains linked to politically unstable regions. Then, in late November, geopolitical tensions began mounting between the US and Canada. After winning the US election, Donald Trump threatened to levy a 25% tariff on services and goods from neighbouring Canada and Mexico. Canada has been the largest contributor to USA uranium imports, providing some 27% of the total imports. This is followed by Kazakhstan with 25% and Uzbekistan with 11%, and should the ban be extended to these Russian allies, the situation will become more precarious.

Power needs for Artificial Intelligence (AI) data centers also emerged as a key driver in the uranium market in 2024. Currently, there are more than 8 000 data centers around the globe, accounting for 4 % of total energy consumption and 1% of global greenhouse gas emissions. Data center capacity is projected to triple by 2030, making the sector’s long-term energy demands immense. As the energy demands of AI surge, governments and companies are turning to nuclear power to ensure a reliable, carbon-free energy supply, with supply deals beginning to emerge.

The global demand for uranium in 2024 was 81 630 t U3O8, but global production was only 59 900 t U3O8, or 73% of the demand, leaving a notable deficit of 21 730 t U3O8. With limited investment in new uranium mines, this growing supply deficit is anticipated to remain at least for the next decade.

At present, 440 reactors are operating in 32 countries, they produced 9% of the World’s electricity in 2024. Sixty-five reactors are under construction in 15 countries, of which 75% are in emerging economies and 50% in China alone. China now has the third-largest nuclear fleet in operation in the world.
The global map of nuclear is clearly changing. In the 1990s, for example, Europe was a frontrunner in nuclear power, but its nuclear industry has shrunk. Today, half of nuclear power projects under construction are in China, which is set to overtake both the European Union and the United States in nuclear capacity by 2030. At the same time, innovation is changing the nuclear technology landscape through the development of small modular reactors (SMR), the first of which are expected to start commercial operations around 2030.

In addition to the active nuclear reactors and those under construction, a further 85 reactors are planned, and over 300 more are proposed. Furthermore, over 50 countries utilize nuclear energy in about 220 research reactors, with more under construction. Apart from research, these reactors are used for the production of medical and industrial isotopes, as well as for training.

Interest in nuclear energy is at its highest level since the oil crises in the 1970s, and support for expanding the use of nuclear power is now in place in more than 40 countries as per a report of the International Energy Agency (IEA). Note-worthy, over the last five years, decisions have been taken to extend the operating lifetimes of more than 60 reactors worldwide, covering almost 15% of the total nuclear fleet. Annual investment in nuclear – for both new plants and lifetime extensions of existing ones has increased by almost 50% in the three years since 2020, exceeding US$ 60 billion.

The most significant shift among policymakers during recent years has been the return to pragmatism and the progress to translate energy policies into actionable industrial strategies and plans. For the first time in over 40 years, a new nuclear reactor is being built in Sweden. The Swedish Minister of Energy has been at the forefront of the Swedish nuclear revival. Together with the Swedish government, she has announced plans to build up to 10 new nuclear power plants by 2045. Sweden is leading the Nordic nuclear race and will, without a doubt, become one of the world’s leading nuclear nations in the years to come. At the same time, Sweden’s Climate and Environment Minister announced the launch of an investigation to abolish the country’s ban on uranium mining. In another Nordic country, Denmark, 55% of people participating in a survey said they are prepared to remove the legislative ban on nuclear power in Denmark. In the southern
part of the globe, the Australian opposition said newly released economic analysis data show its plan for a balanced energy mix that includes nuclear will be cheaper, cleaner, and more consistent than the renewables only approach favoured by the current government.

These positive developments for nuclear are well timed, as the world is moving towards the Age of Electricity, with global demand for electricity set to grow six times as fast as the overall energy demand in the coming decade, driven by the need to power everything from industrial machinery and air conditioning to electric vehicles and data centres. Alongside renewable technologies such as solar and wind, whose electricity output is expanding rapidly, nuclear can play an important role in meeting growing power demand securely and sustainably. This has been recognised as nuclear can now also count on the World’s biggest banks to back the growth of the nuclear industry. Nuclear has attracted the interest and investment of the World’s largest and most advanced technology companies. And nuclear has ever-increasing support from the public, who recognize that in nuclear they have an answer to their demands for energy security, reliable supply and prices, and a response to climate change.

It therefore did not come as a surprise that towards the end of 2024 at COP29 in Baku, Azerbaijan, six new countries joined the initiative to triple global nuclear capacity by 2050 introduced at COP28 in Dubai, United Arab Emirates in 2023, taking the total number to 31. Globally, nuclear energy is becoming a leading source of clean and secure electricity generation – second only to hydropower among low-emissions sources. In 2025, nuclear is set to produce more electricity than ever before, a clear sign of the comeback that the IEA signalled in 2021.

With its operating and developing uranium mines, advanced uranium exploration projects, and ongoing new exploration, Namibia is well positioned to supply the markets.

The Rössing Uranium Mine is with 48 years of activities not only the longest operating uranium mine in Namibia, but also one of the largest uranium open cast mines in the World. Implementation of various projects, related to the Life of Mine extension approved in 2023 commenced in 2024 with numerous technologies being tested for production scale implementation, including an extensive mining pushback in the SJ pit, which has been mined since 1976, for the so-called Phase 4 expansion. Despite challenging production performance and a planned one-month maintenance shut during the year, the positive market developments and favourable exchange rate have supported a good financial performance. Production in 2024 amounted to 2 600 t U3O8, which represents an 11% decrease compared to the 2023 output. This can mainly be attributed to the one-month major maintenance shutdown, as well as water related and technical plant challenges. Exploration drilling on an anomaly adjacent to the mine has started in 2024, and is part of the evaluation of new opportunities that could potentially extend the life of mine beyond 2036.

In 2024, Swakop Uranium’s Husab Mine achieved remarkable milestones in production, with a new record of over 118 million t of mined material, a 2% increase over the 2023 record. The milling operations exceeded 11.9 million t, and the mine drummed 5232 t U3O8 maintaining a similar volume for the second consecutive year, underscoring its ability to consistently meet and surpass production targets while maintaining operational efficiency and excellence. For the first time in Swakop Uranium’s history, the company recorded a profit, marking a significant achievement in the company’s financial sustainability. In order to continue driving efficiency, innovation, and reducing risks, some innovative technologies were introduced in 2024. A real-time crusher blending application now allows seamless direct feeding from all three mining entities while maintaining feed grade and minimizing re-handling. Swakop Uranium invested in an accelerated and bolstered exploration program which started in 2024. It conducted extensive infill, resource, and exploration drilling in 2024 to the extent of 54,000 m drilled in order to enhance resource confidence and identify new targets. A 179 km² airborne radiometric and magnetic survey over exploration tenure and reinterpretation of 500 km² of geophysical data refined geological models and found new potential mineralisation. The accelerated exploration program is expected to yield over 100 000 m of drilling from 2025 onwards.

Following the successful completion of the restart project in 2023, the Langer Heinrich Mine recommenced commercial production from stockpiles when the first ore was fed to the mine’s processing plant in January 2024. The first concentrate was drummed in March 2024 and the mine achieved an important milestone in July 2024, when it shipped its first batch of uranium concentrate since putting operations on care and maintenance in 2018, marking a crucial step in Langer Heinrich’s operational resurgence. The mine continued its production ramp up throughout 2024, and during a planned plant shutdown in November 2024 routine plant maintenance activities and a number of improvement works were completed. Notable achievements from the planned shutdown included a significant improvement in recovery rates and the stabilization of water supply to the plant. A total of 814 t of U3O8 was produced in the 2024 calendar year. Full scale open pit mining is expected to resume in the second half of 2025 and production is supported by world class offtake contracts with top tier industry customers including USA, Europe and Asia.

Orano Mining Namibia’s Trekkopje Mine has been under care and maintenance since 2013, following a slump in uranium prices that forced the company to indefinitely postpone its launch. Accordingly, the company implemented its care and maintenance programme at Trekkopje Mine as planned and this status remains as is. However, the market upturn and the geopolitical situation during 2024 garnered renewed interest in the project. Given the encouraging surge in uranium spot prices, Orano Mining Namibia has started to study in 2024 all options for Trekkopje to see whether the project can be considered opportune. Orano’s Erongo Desalination Plant (EDP) continued throughout 2024 to augment NamWater’s supply to meet the demand of the uranium mines and other users in the coastal area. The EDP achieved annual production of potable water of 15.48 million m3 in 2024.

Bannerman Mining Resources have made significant strides in 2024 to advance the flagship Etango Project, and achieved the milestone of 15 years without a lost time injury. The Front End Engineering and Design (FEED) and the Control Budget Estimate (CBE) processes were successfully completed. Scoping studies for a potential extension or expansion of the world-class Etango ore body were undertaken, to prove the potential for extending the project’s lifespan from 15 to 27 years or doubling the processing capacity of the Etango Mine. Detailed design activities have progressed in 2024, and construction activities commenced on site focusing on bulk earth works, the construction of water infrastructure, which included a 700-cubic-meter water reservoir and ancillary storage dam, while the access road to the site was completed. These activities were delivered safely on time, and within budget. A critical item for the future mine is the tertiary crusher, which was ordered, and manufacture started during 2024. The contract for construction of the 33 kV overhead powerlines was awarded in October 2024, and the first blast for the box cut for the primary crusher took place on 11 November 2024. The company is targeting a final investment decision in the second half of 2025. The world class deposit is expected to deliver some 1 580 t U3O8 per annum over an initial 15-year operating life.

Reptile Mineral Resources and Exploration’s Tumas Project is being developed in two phases. The early works phase, which commenced in December 2024, includes the construction of non-processing infrastructure such as power lines, water pipelines, roads, site offices, and a construction camp. The execution phase involves building the processing plant, to be undertaken by the appointed Engineering, Procurement and Construction Management (EPCM) contractor Ausenco Services Pty Ltd. Following an infill drilling program including 660 RC holes or 12 727 m drilled, the Mineral Resources for the Tumas Project were re-estimated in September 2024. A reserve update based on the new Mineral Resource was announced in December 2024 and includes an 18% increase to 36 000 t U3O8 at 298 ppm using a 100 ppm U3O8 cut-off. This is sufficient for 30-years Life of Mine. In addition, six diamond holes were drilled to collect samples for bulk density test work. In August 2024, a 40 000 m pre-mining grade control program aiming at drilling out the start pits commenced. By December 2024, 1 667 holes or 23 921 m were completed. In addition, two exploration licences were renewed during the course of 2024.

Elevate Uranium implemented an infill drilling program at its Koppies project to increase the JORC category from Inferred to Indicated. Subsequently, in October 2024, the company announced an upgraded JORC mineral resource estimate, with 78% of the resource now in the Indicated category, and a maiden resource estimate of 4 600 t U3O8 for the Hirabeb deposit, a part of the Koppies project. The total mineral resource base for Koppies now stands at 30 000 t U3O8, bringing the company’s total Namibian resource base to 51 000 t U3O8. In May 2024, eight test pits were excavated at Koppies to provide ore samples for a detailed U-pgradeTM metallurgical bench-scale test work program. The results will be used to inform the design and subsequent operation of an U-pgradeTM demonstration plant later in 2025. A contract for the design and construction of the demonstration plant was awarded and construction work has commenced. Meanwhile, resource expansion and exploration programmes continued at Hirabeb, Namib IV, and Capri. A drilling program was also implemented at the Marenica project, in order to test exploration targets outside the known resource area.

Forsys holds a mining licence for its Valencia uranium deposit, valid until 2033. The company also owns the neighbouring Namibplaas uranium resource, for which it also submitted a mining licence application. The two projects together are known as the Norasa Uranium Project. An environmental clearance is in place for mine development and operation on the Valencia mining licence. Work is ongoing to update and improve on its 2015 Definitive Feasibility Study. Forsys sees potential to improve project economics by optimising pit parameters and examining the potential of using heap leaching in mineral processing. The work programme started in 2023, and includes drilling, geotechnological optimisation of pit parameters, evaluation of alternative metallurgical processes including heap leaching, and a critical review of all linear infrastructure and utilities. A milestone was reached when the first blast for a box cut as part of the Valencia mining pit development was done on the 1st of August 2024.

In a first case of a discovery of a sandstone type mineralization potentially amenable for ISL in the south-east of Namibia, Headspring Investments discovered a new sandstone type uranium deposit with measured and indicated resources of 21 860 t U3O8, inferred resources of 27 100 t U3O8, and an exploration potential of a further 35 400 t U3O8. An ISL pilot test is in preparation, the start of which is subject to permis-sion by the regulator.