This article is a sponsored feature from Mining.com.au partner Connected Minerals. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Connected Minerals (ASX:CML) is focused on the world’s third largest uranium producing country in an area surrounded by globally familiar mining operations.
The explorer has a strategic land position in Namibia’s most prolific uranium producing region which hosts one of the longest running and largest open pit uranium mines in the world.
Connected Minerals’ portfolio of projects sits near the majority Chinese-owned Rössing Mine, which came online in 1976 and yielded roughly 6.4 million pounds of uranium in 2024.
Namibia accounted for about 11% of global supply in 2022, producing 12.4 million pounds that year, ranking it just behind Canada in second place and Kazakhstan in top spot.
Two of Namibia’s three uranium mines ranked among the world’s top 10 producers in 2022. The Husab Mine contributed 7% of production that year, while Rössing supplied 5%, ranking them second and sixth respectively. Langer Heinrich did not restart production until 2024.
Namibia hosts about 7% of the world’s uranium reserves. The nuclear fuel was first discovered in the country in 1928 but was not substantially explored until the 1960s when Rio Tinto (ASX:RIO) acquired exploration rights for Rössing.
China’s growing interest in Namibian uranium
China has demonstrated strong interest in securing uranium supply from Namibia, reflected in its substantial ownership stakes in the country’s three operating mines.
China National Uranium bought Rio Tinto’s 68.6% interest in the Rössing Mine in 2018, while the Iranian Foreign Investment Company owns 15%.
The Husab Mine is owned by Swakop Uranium, a privately held company backed by Chinese investment. Langer Heinrich, while majority-owned by Western Australian producer Paladin Energy (ASX:PDN), is also 25% owned by CNNC Overseas Uranium, a wholly owned subsidiary of China National Nuclear Corporation (SSE:601985).
Managing Director Warrick Clent tells Mining.com.au that Namibia’s long history as a major uranium producer, combined with a stable political environment, continues to attract foreign investment and ongoing development.
“The Namibia Government encourages growth in its uranium sector, leading to the expansion of existing operations and the discovery of new deposits,” he says.
“These factors contribute to Namibia’s standing as one of the most attractive jurisdictions for mining investment in Africa.”
The World Nuclear Association echoes this sentiment, stating there is strong government support for expanding uranium mining and even potential interest in nuclear power development.
Connected Minerals is advancing exploration at two projects in Namibia and has lodged an application for a third area.
At the 30km2 Etango North-East Project, the company is targeting primary ‘alaskite’-hosted mineralisation, similar to that found at the Etango, Rössing and Husab uranium deposits.
Driving uranium discovery in global hotspot
Clent tells this news service the Connected Minerals team is seeing similarities to these major operations.
“Given that we have observed the same rock units, and more importantly, strong evidence of the same style of uranium mineralisation, at Etango North-East as in these other mines, our initial aim is to quickly establish a robust uranium resource,” he says.
An initial field program covered an area along strike and within the same rock units as Bannerman Energy’s (ASX:BMN) Etango Uranium Project and confirmed the presence of high-grade mineralisation.
Top rock chip results returned grades of between 682 parts per million (ppm) and 5,413ppm. To put these grades into perspective, Rössing has an average resource grade of 250ppm, Husab sits at 480ppm, Etango is 225ppm and Langer Heinrich grades at 415ppm.
A detailed scintillometer survey undertaken at Connected Minerals’ Etango North-East Project highlighted three key areas of interest – Ondapanda, Onkumbwa and Pandula.
Meanwhile, the 125km2 Swakopmund Project sits directly downstream, along ancient paleochannels, from French multinational Orano’s 340-million-tonne Trekkopje and Klein Trekkopje prospects, which are calcrete-hosted paleochannel deposits.
A geophysical survey recently completed by Connected Minerals outlined potential paleochannel positions that the company plans to drill test in late April this year.
Prospective targets were located in the central and south-eastern areas of the licence.
Connected Minerals says Swakopmund has the potential to host a low-grade, high-tonnage uranium deposit.
The company’s projects are also located near existing infrastructure, including a port, rail and power networks, and Namibia has a skilled labour force with experience in uranium production and exploration.
Next generation uranium exploration in Namibia
Connected Minerals’ board also includes one of the key players in the construction and commissioning of the $2.5 billion Husab Mine – the world’s largest uranium-only operation.
Non-Executive Director Barend Morkel – who has spent over 19 years in the mining sector in several senior positions with the likes of Endeavour Mining (TSX:EDV), Glencore (LSE:GLEN), China General Nuclear Power Group (HKG:1816), Vale (NYSE:VALE), and Norilsk Nickel (LSE:MNOD) – helped supervise the financial side of the Husab Project for Swakop Uranium.
Clent says Connected Minerals is positioned to become a next generation uranium explorer based on the potential of its projects located in Namibia’s most prolific uranium producing region.
“Our entire portfolio lies near known uranium mines and deposits, including the Rössing, Husab, Etango and Langer Heinrich projects. This proximity also offers the advantage of existing infrastructure that supports these key operations,” he says.
“We intend to leverage these advantages to rapidly advance exploration programs in 2025 and beyond.
“While our two granted exclusive prospecting licences have shown early promise, considerable work is required at both sites, starting with the drilling program we plan to commence at Etango North-East in April.”
Connected Minerals has mapped out the high-priority targets it plans to drill test in the upcoming campaign at Etango North-East and is also preparing to begin maiden drilling at Swakopmund in the second quarter.
“A recent horizontal-loop electromagnetic survey completed at Swakopmund has identified several key targets which we plan to focus on during the maiden campaign,” Clent says.
Despite a recent decrease in the uranium spot price, Connected Minerals is confident in the long-term fundamentals of the sector due to a combination of demand drivers and supply issues.
There is a big push to triple global nuclear capacity by 2050, with major corporations and large energy users like Amazon and Google in March publicly backing an extensive and concerted expansion of nuclear power to meet increasing global energy demand.
The World Nuclear Association forecasts a 28% increase in uranium demand through to 2030 to support an 18% increase in reactor capacity. The market is set to continue to grow substantially beyond that with electricity demand tipped to increase by about 50% by 2040.
“We expect to see demand for uranium strengthen off the back of the decarbonisation of energy grids, the need to stabilise baseload power grids and growth in data centres and artificial intelligence,” Clent says.
“Leading economies such as the United States and China will drive this demand.
“Supply issues are also emerging due to a lack of investment in the uranium sector in the years since the Fukushima disaster, creating a limited pipeline of new projects.”
Write to Angela East at Mining.com.au
Images: Mining.com.au & Connected Minerals
