Partner wanted for Shiyela Iron Project
Australian uranium exploration company, Deep Yellow says it is looking for a partner in the development of the Shiyela Iron Project after receiving a mining licence late last year.
The project is held by Shiyela Iron, a Namibian subsidiary of Deep Yellow and empowerment partner, Oponona Investments. It is the only known commercially viable iron deposit in the country. Once operational, the project will initially produce two million tonnes per annum of a high quality, coarse grained magnetite expected to attract a premium price in the export market. Depending on Walvis Bay port’s capacity, ongoing exploration success and overall market economics, the project could ultimately be expanded to around 7.5 million tonnes per annum of magnetite product.
But despite the commercial viability of the deposit, Deep Yellow announced in 2012 that divestment in the Shiyela Iron Project is a priority saying the project presents a potential opportunity to source non-dilutionary funding for the company. RMB Namibia was appointed to divest the project.
This week the company was singing a different tune with MD Greg Cochran, saying they were now looking for a development partner for the iron project. He said: “ we have gone from discovery to a mining licence in a little over four years ….with the recent positive outcome of the resource update and scoping study we will now quickly progress the search for a development partner for this attractive, well located project.”
Namibia is currently a net importer of raw iron ore used at Rössing Uranium as a source of ferric in their processing plant.