Bannerman Energy Moves Ahead With Etango Mine Construction

Bannerman Energy (ASX:BMN) will begin full-scale construction at its Etango uranium project in Namibia, with first yellowcake targeted for 2028.

The go-ahead came after the Etango joint venture made a final investment decision on the Etango-8 design. Bannerman owns 55 percent of the joint venture, and CNNC Overseas Limited (CNOL), a subsidiary of China National Nuclear Corporation (CNNC), owns the other 45 percent. The joint venture holds 95 percent of the project.

Etango is expected to produce about 3.5 million pounds of U3O8 a year on average.Pre-production capital costs are forecast at about US$353 million, plus or minus 10 percent. About US$64 million of that had already been spent on early works as of September 30, and the joint venture’s cash of about US$295 million covers the remainder.

“With construction fully funded on a debt-free basis, a Tier-1 strategic partner in CNOL and a cornerstone offtake framework on market-based terms, Etango is now set to become the next major greenfield uranium project globally to enter production,” Managing Director and CEO Gavin Chamberlain said in the announcement.

Chamberlain said the early works program “has tracked to budget and schedule,” with bulk earthworks “substantively complete.”

The decision follows binding agreements Bannerman signed with CNOL in February. Under those terms, CNOL agreed to invest up to US$321.5 million at completion for a 45 percent stake in Bannerman Energy (UK), which owns 95 percent of Etango. Namibia’s One Economy Foundation holds the remaining 5 percent on a loan-carried basis.

CNOL will buy 60 percent of Etango’s output on arm’s-length, market-based terms, and Bannerman will market the other 40 percent itself. The CNNC group already owns 68.6 percent of Namibia’s Rossing uranium mine and a 25 percent non-operating interest in the Langer Heinrich mine.

In February, Bannerman said the joint venture would be “ideally placed to evaluate the expansion of Etango once the mine is in steady state production.”

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.