N$5.8bn Etango mine set for construction
Bannerman Energy has taken a final investment decision on its Etango uranium project, clearing the way for full-scale construction to begin over the coming months.
The project, in the Erongo region, is expected to start commissioning and produce its first uranium concentrate, known as yellowcake, in 2028. It is forecast to produce an average of 3.5 million pounds of uranium oxide (U₃O₈) a year.
The decision marks a significant step for the project after more than two decades of exploration, studies and preparatory work.
Bannerman estimates pre-production capital expenditure at N$5.82 billion (US$353 million), with a margin of 10% either way. About N$1 billion (US$64 million) had already been spent on early construction works by the end of September.
The company said the remaining forecast expenditure was covered by about N$4.86 billion (US$295 million) in cash held by the Etango joint venture.
Bannerman also had about N$2 billion (A$175 million) in cash of its own, excluding the joint venture's funds, to cover its share of working capital through construction, the mine's ramp-up and the start of commercial production.
The company said the project was fully funded without debt.
The Etango joint venture owns 95% of the project. Bannerman holds a 55% stake in the venture, while China Nuclear Corporation subsidiary CNNC Overseas Limited owns the remaining 45%.
Bannerman said early works had progressed to plan, with bulk earthworks substantially complete and detailed design well advanced. Construction and supporting infrastructure work will now move towards full-scale development.
The project is based on conventional open-pit mining and heap-leach processing. A scoping study completed in 2024 identified the potential to increase annual production to 6.7 million pounds of uranium oxide, above the current production forecast.
Bannerman managing director and chief executive Gavin Chamberlain said the investment decision marked a defining moment for the company, its Chinese partner and Namibia.
He said the project was expected to become a long-life uranium producer at a time when nuclear power utilities were seeking secure and diversified supplies.
Bannerman also announced the appointment of Danie van Aswegen as chief executive of Bannerman Mining Resources Namibia. He previously served as the company's Namibian chief operating officer and has more than 25 years of experience in the mining industry, including senior project and technology roles at Debmarine Namibia.
