Namibia Uranium News Takes Stage

This summary highlights the key talking points from our latest Energy Show interview series on June 1st, 2023, with guest Brandon Munro, who is the CEO and Managing Director of Bannerman Energy. Munro is an accomplished corporate attorney and resources executive with over two decades of professional experience. He held the position of General Manager at Bannerman from 2009-2011 before becoming its CEO in 2016. Living in Namibia for over half a decade (2009-2015), Munro took on advisory roles with the Namibian Uranium Association and the Namibian Chamber of Mines. Recognized as a leading thinker in the uranium industry, Munro has made significant contributions to the World Nuclear Association's Nuclear Fuel Demand working group and the UN Economic Commission for Europe.

What’s happened this week?

The most significant news of the week was the turmoil in Namibian uranium stocks. Bloomberg had published an article suggesting that Namibia was set to follow Zimbabwe, Indonesia, and Chile's steps by nationalizing its mining industry. The article caused a flurry in the global markets, prompting several investors to rethink their positions.

However, the comments were taken out of context. The Namibian government issued a clarifying statement saying that nationalisation was not their intention and that all existing mining licenses would remain intact. The statement eased the market's concerns and put to rest the fears of potential license revocations. The political and legal aspects of this issue deserve further discussion, drawing from Brandon’s extensive experience dealing with Namibian government policy. [1][2]

Winner of the Week

Ur-Energy was this week's standout winner with the restart of commercial production at their Lost Creek ISR facility in Wyoming. This came despite Q1 being noted as "one of the snowiest in Wyoming’s recorded history," according to CEO John Cash. The facility will target an initial production rate of 600,000lbs per annum, which is half of its licensed production capacity. [link]

Bungle of the Week

The week's bungle award is jointly presented to two deserving winners. Firstly, to those who proposed using pig fat as a green alternative for jet fuel. While the notion of biofuels has been gaining traction in the wake of the global climate crisis, the proposition of pig fat as a green jet fuel alternative is less than palatable.

Secondly, to the biofuel experts who, instead of examining the potential of pig fat as a biofuel, focused on criticizing the obvious issues associated with this proposal. The criticism detracts from more meaningful discussions about the potential corruption in the bio-fuel sector and the best ways to harness biofuels for a more sustainable future. [link]

Moonshot or Fizzer?

On the brighter side, the moonshot of the week goes to China's reactor growth and what it implies for uranium demand. As indicated by John Quakes [1], China's nuclear power sector is experiencing substantial expansion, which could potentially boost global uranium demand and shift the balance in the energy markets. [2]

Closing Thoughts

The events of this week highlight the volatility of global markets and the often-unexpected factors that can drive them. From the rumblings in Namibia's uranium sector to the perplexing suggestion of pig fat as jet fuel, these events serve as a reminder of the dynamism and complexity of our global systems. As we look ahead, these incidents provide valuable insights and offer a springboard for further conversations about our future.

About Bannerman Energy

Bannerman Energy, an Australian listed uranium development company, is primarily known for its advanced Etango Project located in Namibia, a globally significant uranium producer with strong political stability and a supportive infrastructure for uranium mining. Etango, having undergone extensive feasibility studies since its public listing in 2005, boasts a large-scale uranium mineral resource. Environmental approvals are in place for the mine, which is to be developed with strong regard for social responsibility and best-practice governance. In 2022, a Definitive Feasibility Study (DFS) confirmed the viability of an accelerated 8Mtpa development of Etango, known as Etango-8. As of 2023, the company is engaging in Front End Engineering and Design (FEED) work for Etango-8, with a mining license application submitted and parallel off-take and project finance workstreams well underway. A Final Investment Decision on Etango-8 is targeted for H2 2023, subject to uranium market conditions.

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