Bannerman approves N$$5.8 billion Etango uranium project

CHAMWE KAIRA

Bannerman Energy and its joint venture partner China National Nuclear Corporation Overseas Limited (CNNC Overseas) have taken a final investment decision (FID) on the Etango uranium project in Namibia, clearing the way for full-scale construction ahead of planned first production in 2028.

The project, located in the Erongo region, has forecast pre-production capital expenditure of approximately US$353 million, equivalent to about N$5.8 billion at an indicative exchange rate of N$16.70 to the US dollar.

Bannerman said approximately US$64 million had already been spent on early works as at 30 September 2026, leaving about US$295 million in remaining pre-production expenditure. The remaining amount is funded by existing cash held by the Etango joint venture.

The project is being developed by the Etango joint venture, in which Bannerman holds a 55% stake and CNNC Overseas owns 45%. The Etango project itself is 95% owned by the joint venture.

The final investment decision is based on the Etango-8 design, which is expected to produce an average of approximately 3.5 million pounds of uranium oxide (U₃O₈) annually.

Bannerman said commissioning and first production are targeted for 2028.

The company said its early works programme had progressed, with bulk earthworks substantially complete, detailed design well advanced and key supporting infrastructure either completed or significantly progressed.

Bannerman managing director and chief executive officer Gavin Chamberlain said the investment decision marked a major milestone for the company, its Chinese partner and Namibia.

He said the decision followed more than two decades of exploration, studies and project development work.

Chamberlain said construction was fully funded without debt, while the project had a strategic partner in CNNC Overseas and an offtake framework based on market terms.

He added that the project was moving into full-scale construction with safety, quality and schedule remaining the main priorities.

Etango is expected to become a long-life uranium producer in Namibia’s established Erongo uranium region. Bannerman said the project also had potential for expansion beyond its initial production forecast.

The company further announced the appointment of Danie van Aswegen as chief executive officer of Bannerman Mining Resources Namibia.

Van Aswegen has served as Bannerman’s chief operating officer in Namibia since October 2025 and has more than 25 years of experience in the mining industry, covering mining operations, engineering, project management and technology development.

Before joining Bannerman, he was head of projects and technology development and an executive committee member at Debmarine Namibia, where he contributed to major projects and the integration of new technologies.

His appointment comes as the Etango project moves from early works into full-scale construction.

Chamberlain brings additional project development experience, including serving as project director for the development of Namibia’s US$2 billion Husab uranium mine, one of the world’s largest operating uranium mines.

Bannerman said its remaining working capital requirements through construction, ramp-up and the targeted start of commercial production were covered by its existing cash balance of approximately A$175 million as at 30 September 2026, excluding cash held by the Etango joint venture.

The company said its share of the remaining working capital would only be called on after most of the joint venture’s existing cash had been spent.