Bannerman Energy Ltd has concluded uranium offtake agreements with North American utilities.
The company has executed binding contracts with two Tier-1 power generators for the supply of one million pounds of uranium over a five-year period, from 2029 to 2033.
The counterparties are Fortune 500-listed utilities with investment-grade credit ratings and nuclear generation capacity. Each agreement allows the utility to adjust deliveries by up to 10 per cent annually.
The uranium will be supplied from Bannerman’s Etango Project in Namibia’s Erongo Region, where production is scheduled to commence in 2028.
Both contracts are structured as base-price agreements with escalation provisions tied to the US GDP-Implicit Price Deflator, effective from the start of the supply term.
The base price reflects current levels of long-term uranium indices. Each agreement remains subject to regulatory approvals for uranium sales.
Bannerman’s Chief Executive Officer Gavin Chamberlain said the agreements mark a significant milestone for the project:
“The signing of these limited, select offtake agreements (the first for Bannerman) with high-quality utility counterparties represents a further important step in our systematic advancement of Etango towards a targeted Final Investment Decision. We are able to demonstrate to potential customers a strong foundation for confidence in our ability to meet future supply commitments. In combination with growing global nuclear demand and ongoing tightening in uranium markets, this further reinforces our position as a strategic, long-term supplier to major utilities.”
Bannerman Energy has committed approximately N$1.64 billion to the development of its Etango uranium project near Swakopmund, positioning the project to become Namibia’s fourth uranium-producing mine.
As of 30 June 2025, the company had completed about A$25 million (N$309 million) in early works at the site, with an additional A$23 million (N$284 million) in contractual commitments.
To support these works and maintain project momentum, Bannerman also secured A$85 million (N$1.05 billion) in new equity funding during the first half of 2025.
The early works encompassed bulk earthworks, construction of access roads, and installation of water reticulation infrastructure. Bannerman also advanced detailed engineering and mobilised contractors, marking a transition from feasibility into execution. The A$23 million in committed expenditure represents contractual obligations covering equipment, civil works, and procurement packages required to maintain the project timeline.
The Etango project, near Swakopmund in the Erongo Region, is one of the world’s largest undeveloped uranium deposits. With an initial mine life of over 15 years based on the Etango-8 development model, it is expected to produce 3.5 million pounds of U₃O₈ per year. Bannerman has already received a mining licence and environmental clearance certificate, positioning it well for rapid advancement toward complete construction.
Projected first production in 2027 could see Etango advance ahead of Forsys Metals’ Norasa project, which is still finalising permitting and financing. Deep Yellow’s Tumas project, once ahead of Etango, was delayed in early 2025 after its final investment decision was postponed due to uranium price volatility and infrastructure requirements.
Etango contains Ore Reserves of about 61 million pounds of U₃O₈ and a broader Mineral Resource exceeding 200 million pounds.
In December 2022, a Definitive Feasibility Study confirmed the Etango-8 plan, based on an eight million tonne per annum processing scale and annual output of about 3.5 million pounds of U₃O₈.
A scoping study in March 2024 outlined the potential to expand production to 6.7 million pounds annually. Bannerman also constructed and operated a heap leach demonstration plant to mitigate the risks associated with the planned processing method.
All environmental approvals for Etango and its infrastructure have been granted. The project was awarded a mining licence in December 2023.
Namibia is the world’s third-largest uranium producer, with three operating mines: Rössing, Husab, and Langer Heinrich. By 2030, the sector is expected to expand to six operating uranium mines, including Bannerman’s Etango, Deep Yellow’s Tumas Project, and Elevate Uranium’s Koppies Project.
