Modern Mining March 2024

OPENCAST MINING AND EQUIPMENT

Having recently listed on the LSE, Neo Energy Metals, a new uranium and strategic metals focused mining and development company, which is advancing its flag ship Henkries uranium project in the Northern Cape, is eyeing an inward African listing sometime this year, CEO Sean Heathcote, tells Modern Mining . Uranium rebound – Neo Energy advances Henkries project

L ocated 80 km north of the town of Springbok, the Henkries project is an advanced, low-cost uranium

which subsequently impacted demand for uranium.” The incidents included: the Three Mile Island in 1979, Chernobyl in 1986, and Fukushima in 2011, all of which impacted the devel opment of the Henkries project at the time. On a more positive note, Heathcote says there’s no better time than the present to be a uranium mine developer. He explains that the resurgence in demand for uranium and the commodity’s sub sequent surging price profile is underpinned by the global drive for a transition to cleaner base-load energy. “As governments make the jump from fossil fuels to clean energy sources, uranium is emerging as a fitting transition solution for base-load energy needs until the grid technology can be upgraded to handle renewables.” According to Heathcote, the perception towards nuclear has changed dramatically, “to the point where the former head of Greenpeace, Patrick Moore, is now promoting nuclear as the new baseload fuel”, a pivot that further endorses the acceptance of nuclear energy as a suitable power source. According to the World Nuclear Association (WNA), demand for uranium, which is used in nuclear reactors, is expected to climb by 28% by the year 2030 and nearly double by 2040 – this, as governments ramp-up nuclear power capacity to meet zero-carbon targets. Interest in nuclear power has gained further traction since Russia invaded Ukraine with several nations now looking for alternatives to Moscow’s energy supplies, the WNA’s biennial Nuclear Fuel Report “This is a great time to be developing ura nium projects and, since 2018, there has been a massive drive for increased instal lations of nuclear reactors. In fact, there are an estimated 440 nuclear reactors cur rently powering power plants globally, with another +60 under construction and more than 100 in the planned phase.”

project with a clear pathway to production. Following its listing on the LSE in November 2023, where it benefitted from global liquidity, Neo Energy is now eager for a secondary listing on the local bourse. “We are committed to developing a long term future in South Africa and a listing on a local exchange will give South Africans direct access to a uranium project developer.” Discussing the LSE listing, Heathcote explains that it chose the LSE, which hosts a very small num ber of uranium companies, to bring Neo Energy to the market as the sole uranium exploration and development player listed on the main board. Uranium bull run While the uranium market faced several challenges in the past, given that during periods of resurgence the industry experienced two key nuclear power plant accidents, as well as the financial crisis of 2008, these days, the commodity’s fortune is on the rise. “Nuclear incidents changed the course and appe tite for the development of nuclear power stations,

Sean Heathcote, CEO of Neo Energy Metals.

Neo Energy Metals recently listed on the London Stock Exchange.

feature

18  MODERN MINING  March 2024