Bannerman Energy says it expects to take a final investment decision (FID) on its Etango uranium project in the second half of this year, likely in August or November 2026, subject to the completion of conditions precedent and regulatory approvals.
The company struck a binding strategic financing and joint venture agreement with CNNC Overseas Limited (CNOL), a subsidiary of the China National Nuclear Corporation (CNNC), for the development of the Etango uranium project in Namibia.
Under the deal, CNOL will invest up to US$321.5 million (about N$5.1 billion) into a newly formed joint venture (JVCo), acquiring a 45% stake in the entity that owns 95% of the Etango project.
Of this total, the initial subscription is US$294.5 million in cash, with up to an additional US$27 million in reimbursements to Bannerman for past agreed project expenditure.
The agreement includes a life-of-mine offtake entitlement for 60% of Etango’s production on market-based terms, with Bannerman free to market the remaining 40%.
Bannerman chief executive Gavin Chamberlain told the media in Windhoek on Monday that the funding arrangement still has “probably six to nine months to run before it’s finalised”, with a final signed contract expected once the conditions precedent have been met.
“Once the conditions precedent have been met, we will have a final signed contract and at that point in time we will do the FID,” Chamberlain said.
He said the deal structure enables Bannerman to keep the project on its current schedule despite the outstanding approvals, with commissioning targeted for 2028 and uranium expected to reach the market in 2029.
“The good news about the contract is it’s going to allow me to continue to develop in this period while we’re doing the CPs, to actually continue to develop the project along the current timelines,” Chamberlain said.
Chamberlain said the transaction is structured as a 55%–45% split, with the partner contributing its 45% share of costs during the period in which conditions precedent are being completed.
“Even though we haven’t finalised the agreement, it allows us to continue with development until we get to FID,” he said.
Competition commission approval
Chamberlain said the main Namibian conditions precedent include finalising a water supply contract and amending a Namport lease agreement for a port-side facility, alongside approval from the Namibian Competition Commission.
“We have to finalise the water supply contract and we have to finalise the lease agreement that we have of Namport for the asset facility in the port,” he said.
He added that Bannerman already has a lease in place, but wants amendments that are “currently sitting with Namport”.
Chamberlain said the Competition Commission process has started and argued that the deal should have a limited local competition impact because it was concluded at the UK level.
He said the funding structure supports a build-through to production, with employment projected to rise from about 450 Namibians currently on site to as many as 1,200 during construction, before settling at roughly 750 full-time jobs in operations.
Part of the broader agreement involves selling 60% of Etango’s uranium output to the partner, with the remaining 40% retained by Bannerman for international marketing.
“Part of the deal is to sell 60% of our uranium to our partner,” Chamberlain said, adding that the pricing is market-related and that rising uranium prices would lift royalties paid to Namibia.
He said Bannerman’s strategy includes breaking construction packages into smaller work scopes to improve access for local contractors with limited balance sheets, and extending that approach to small and medium enterprises through subcontracting arrangements managed by main contractors.
“A Namibian mine for Namibians,” Chamberlain said, adding that Bannerman has so far achieved a “100% success rate” with its approach to awarding appropriately sized contracts to Namibian firms.
He also said Bannerman’s contracts require compliance with Namibian labour and safety laws throughout the contractor and subcontractor chain.
“My contracts are written such that there’s a contractual onus on the main contractor to comply with all Namibian law,” he said.
Water supply tied to desalination, pipeline under construction
On water, Chamberlain said Bannerman has a signed memorandum of understanding with NamWater for desalination supply from Orano’s plant, and that the project is already constructing a permanent pipeline from Swakopmund to the site.
“We are already constructing the permanent water line from the base supply camp at Swakopmund through to site,” he said.
He said Bannerman had checked claims about available desalination capacity and is satisfied that supply is sufficient to support the project alongside existing mines and municipalities.
Chamberlain said Etango will use heap leaching and claimed the heap leach pad has been designed with protective layers, lined trenches and lined ponds to prevent seepage, with environmental approvals in place. He said the project will operate a progressive heap-leach design with five-metre cells rather than building high-stacked heaps.
He also corrected the mine-life framing used in some public discussions, saying Etango-8 is designed for around 15 years, with optional expansion pathways that change output rates and life-of-mine outcomes depending on uranium prices and development decisions made after production begins.
On project funding, Chamberlain said the remaining amount required to reach FID is about US$315 million, excluding additional working capital that may be needed once the mine is commissioned but before revenues start flowing.
“The financial investment decision is the remainder that we have to still fund is in the region of US$315 million,” he said.
