Bannerman Approves $353 Million Etango Uranium Mine in Namibia

Bannerman Energy and its Chinese partner CNNC Overseas have approved full-scale construction of the Etango uranium project in Namibia, with first production targeted for 2028. The $353 million development is expected to produce an average of 3.5 million pounds of uranium oxide annually.

The final investment decision follows more than two decades of exploration, technical studies and preparatory work. Bannerman said approximately $64 million has already been spent on early works, leaving about $289 million in pre-production expenditure.

The project is being developed in Namibia’s Erongo region, an established uranium-producing area. The approved design includes an open-pit mine and heap-leach processing operation capable of handling eight million tonnes of material annually.

Bannerman holds a 55% interest in the joint venture, while CNNC Overseas owns 45%. The venture holds a 95% interest in Etango.

Chinese Partner Secures Major Supply Agreement

The construction approval follows a financing agreement reached with CNNC Overseas in September. The Chinese partner invested $320.4 million, including $294.5 million into the joint venture, helping secure funding for the project’s development.

Under the agreement, CNNC Overseas will purchase 60% of Etango’s lifetime production on market-based terms, without price floors or ceilings. Bannerman retains independent marketing rights for the remaining 40%.

The joint venture held approximately $295 million in cash as of September 30 to cover outstanding pre-production costs. Bannerman separately reported around A$175 million in cash, which it said would fund its remaining share of working capital through construction, ramp-up and targeted commercial production.

The project’s capital estimate carries a margin of plus or minus 10%.

Construction Advances Towards Production

Namibia granted Etango its mining licence in December 2023, with environmental approvals covering the mine and supporting infrastructure.

Construction preparation is already well advanced. Bannerman’s September update reported that bulk earthworks were 99% complete, while approximately 86% of the concrete work for the first two contracted packages had been poured. The first stage of the permanent water pipeline was about 90% complete.

The project’s progression comes as nuclear power utilities seek reliable uranium supplies from a wider range of producers. Bannerman expects Etango to become a large-scale, long-life operation, adding to Namibia’s position in the global uranium market.

Image: Bannerman’s Etango uranium project in Namibia. (Image courtesy of Bannerman Energy.)