Bannerman seeking N$7bn for Etango project
New uranium mine in the works
Once developed, the Etango mine will have an initial life-of-mine span of 15 years.
Bannerman Resources Namibia has announced its intent to fully develop its Etango mining uranium project, which it says will require upwards of N$6 billion.The company is now in the process of a capital raise to fund the construction and development costs of its Etango project, which it plans to start developing this year.
Motivating the need for the project, newly appointed Bannerman managing director, Werner Ewald said rising demand for uranium has given the project the required impetus.
“We are busy putting proposals together for nuclear facilities for supply, we are busy with our strategic financing of the project. To build the mine will cost around US$350 million, and that is between N$6 and N$7 billion, and we do not have that,” Ewald said.
'Now is the time'
Ewald said he is confident Bannerman would be able to raise the funding required for the construction of its Etango mine later this year.
“Construction is planned for later in the year. We believe we are going to have the funding and start with the real construction of the mine. Now is the time for us to develop the mine; there is a lot of demand. New mines have to be developed otherwise,” he said.
No anticipated water woes
According to Ewald, there is enough local water supply within the Erongo Region to meet domestic and industrial demand for existing mining projects, and for future mines in the planning stages.
“There are 4 000 000 cubic metres (m3) coming from the Omdel aquifer and 7 000 000 m3 coming from the Kuiseb aquifer. The coast does not consume that amount of water, so there is actually, with the current plant [Erongo desalination plant], still enough water for our mine (Etango), for the Langer Heinrich mine restarting, and for the [planned] Tumas uranium project,” Ewald said.
Development outlines
The ministry of mines granted Bannerman a mining licence in December 2023, paving the way for the development of a mine.
“The Etango mining licence application was granted in December 2023. This key milestone was followed swiftly by the commencement of early development works at Etango, with the awarding of two contracts to local Namibian businesses for the construction of a temporary water pipeline and access road,” the company previously said in an update to the market.
“Front End Engineering and Design (FEED) studies for Etango are well progressed in parallel with advancing offtake and project finance workstreams. These activities are steadily culminating in a push towards a positive final investment decision (FID) for Etango, market conditions permitting, targeted during 2024,” the company added.
A scoping study undertaken anticipates the creation of 760 jobs, with the mine's life-of-mine span set at 15 years.
The company also announced the appointment of a local entrepreneur, Twapewa Kadhikwa, as its new board chairperson.