The Etango joint venture between ASX- and NSX-listed Bannerman Energy and CNNC Overseas Limited (CNOL) has taken a positive final investment decision on the Etango uranium project in Namibia's Erongo Region, Bannerman said on 23 October.
The decision clears the way for full-scale construction, which Bannerman expects to start over the coming months, with commissioning and first yellowcake production targeted for 2028.
Fully funded, debt-free build
"Today's FID by the Etango JV is a defining moment for Bannerman, for our partner, CNOL, and for Namibia." — Gavin Chamberlain, Managing Director and CEO, Bannerman Energy
Bannerman puts pre-production capital at about US$353 million, within a range of plus or minus 10%. About US$64 million had already been spent on early works by 30 September.
According to the company, the remaining capital will be paid from about US$295 million of cash already held by the joint venture. Bannerman said its share of working capital through construction, ramp-up and commercial production is covered by its own cash of about A$175 million, so the project will be built without debt.
Bannerman owns 55% of the joint venture and CNOL 45%. The joint venture holds a 95% interest in the project. CNOL is a subsidiary of China National Nuclear Corporation (CNNC), whose group already owns 68.6% of the Rössing uranium mine and a 25% non-operating stake in Langer Heinrich, both in Namibia.
Output and expansion
Etango is designed as a conventional open-pit mine with heap leach processing at 8 Mtpa, producing an average of about 3.5 million lb of uranium oxide (U3O8) a year. A March 2024 scoping study showed the operation could be expanded to 6.7 million lb a year.
The mining licence was granted in December 2023 and early works began in January 2024. By March this year the site contractor workforce had passed 560 people and the project had logged 500,000 hours without a lost-time injury, Bannerman reported at the time.
"Today's FID by the Etango JV is a defining moment for Bannerman, for our partner, CNOL, and for Namibia," said Gavin Chamberlain, Bannerman's managing director and CEO. He added that Etango is set to be a long-life, large-scale producer in the Erongo region.
Bannerman also named Danie van Aswegen chief executive of its Namibian subsidiary, Bannerman Mining Resources Namibia. He has been chief operating officer for Namibia since October 2025.
Ecofin Agency, which also reported the decision, noted that the project had been held back for several years by market conditions and funding, and that uranium forward prices have firmed this year.
Why it matters
Namibia is already the world's third-largest uranium producer. A new, fully funded mine in the Erongo Region adds construction work and long-term jobs, deepens Chinese investment in the country's uranium sector and strengthens Southern Africa's position as a supplier of fuel for nuclear power.