Deep Yellow announces major construction contracts for Tumas Project

Deep Yellow awarded A$34 million in construction contracts for its Tumas uranium project in Namibia, supporting project progress and local content.

The Deep Yellow Ltd (ASX: DYL) share price is in focus today after the company secured two major civil and concrete construction contracts for its Tumas Project in Namibia, valued at approximately A$34 million, further de-risking its flagship uranium development.

A woman working in construction leans against a piece of machinery wearing a hi vis vest and a hardhat, smiling.

Image source: Getty Images

What did Deep Yellow report?

  • Two major civil and concrete construction contracts awarded for the Tumas Project in Namibia.
  • Estimated combined contract value of around A$34 million, following a competitive tender process.
  • Contracts awarded to 100% Namibian-owned contractors, supporting local content.
  • Work packages cover processing plant concrete, precast infrastructure, and Run-of-Mine retaining structures.
  • Mobilisation scheduled for August 2026 with sequential handover to reduce execution risk.

What else do investors need to know?

Both contracts were awarded to Namibian Construction Pty Ltd and Nexus Building and Civils Contractors Pty Ltd, reinforcing Deep Yellow's focus on in-country capability and local workforce participation. The company said the process followed industry-standard terms and competitive tendering.

Civil and concrete works will be delivered sequentially from August 2026. While they do not alter the planned 24-month construction schedule after the Final Investment Decision, the work is expected to create multiple work fronts and greater project flexibility.

What did Deep Yellow management say?

Managing Director and CEO Greg Field said:

These awards represent another important milestone in our disciplined approach to project development. Our objective has always been to systematically remove execution risk, secure high-quality contractors and ensure the Project is positioned for efficient delivery as we advance toward FID towards the end of this year. Civil and concrete works are fundamental to the successful delivery of any major processing facility. Securing these capabilities now creates multiple construction work fronts, increasing execution flexibility and strengthening confidence in execution once FID is reached.

We are equally pleased that both contracts have been awarded to highly capable Namibian companies. Developing Tumas in partnership with local industry is central to our strategy and reflects our commitment to delivering long-term value for Namibia alongside our shareholders.

What's next for Deep Yellow?

Deep Yellow is progressing towards a Final Investment Decision for the Tumas Project, expected in the fourth quarter of 2026. The company continues to pursue its dual-pillar growth strategy, aiming to become a globally significant uranium producer.

Its development pipeline also includes the Mulga Rock Project in Western Australia, and exploration projects in the Northern Territory and Namibia. With a strong focus on partnership and project execution, Deep Yellow expects to deliver long-term value for communities, shareholders and the uranium supply chain.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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