Bannerman Energy has retained the right to market 40% of the uranium expected to be produced at its Etango mine in Namibia to customers outside its Chinese joint venture partnership, potentially opening a substantial new source of uranium supply to international nuclear utilities.
The arrangement, disclosed in Bannerman’s investor presentation released on 11 November 2026, comes as the company proceeds with full-scale construction of the Etango uranium project, approximately 30 kilometres south-east of Swakopmund.
Under its agreement with CNNC Overseas Limited (CNOL), the Chinese partner has secured an offtake arrangement covering 60% of Etango’s projected life-of-mine uranium production.
The remaining 40% is available for sale to third-party buyers through an independent marketing programme.
Etango is expected to produce 52.6 million pounds of uranium oxide over its initial 15-year operating life, averaging 3.5 million pounds annually.
Based on those production estimates, approximately 31.6 million pounds would fall under the Chinese offtake arrangement, leaving about 21 million pounds available for other customers.
These figures represent projected production allocations rather than uranium already produced or contracted for delivery.
Chinese sales tied to market prices
Bannerman said the agreement with CNOL provides for uranium sales at prevailing future market prices, without fixed minimum or maximum price limits.
The pricing structure allows the joint venture to benefit from changes in uranium market prices while providing the Chinese partner with access to a substantial portion of future production.
The agreement forms part of the broader investment transaction through which CNOL acquired a 45% interest in the Etango joint venture.
Bannerman retains 55% of the joint venture, which owns 95% of the Etango project. Namibia’s One Economy Foundation holds the remaining 5%.
The Chinese investment has enabled Bannerman to proceed with construction without taking on project debt.
More than 21 million pounds available
The uncommitted portion of Etango’s planned production provides Bannerman with an opportunity to negotiate uranium sales agreements with additional international customers.
The company said the independent marketing arrangement preserves flexibility in contracting future uranium deliveries.
At the initial planned production rate of 3.5 million pounds annually, the 40% allocation would represent an average of approximately 1.4 million pounds a year, although actual annual production and sales volumes will vary.
Bannerman has not identified buyers for the remaining production in the November presentation or announced how much of that allocation it expects to contract before the mine enters production.
The company expects first uranium production in 2028 following a two-year construction and commissioning programme.
Expansion could increase future sales volumes
Bannerman is also considering expanding Etango’s processing capacity from eight million to 16 million tonnes annually after the initial operation reaches production.
The proposed expansion could increase uranium output to approximately 6.7 million pounds a year after completion, compared with the initial mine’s projected annual average of 3.5 million pounds.
The expanded operation is estimated to produce 95.2 million pounds over a 16-year mine life, although the company has not made a final investment decision on the expansion.
The potential increase in production could create additional uranium marketing opportunities, subject to future development decisions and the terms of applicable offtake agreements.
Construction under way
Bannerman said the initial Etango development is fully funded, with forecast pre-production capital expenditure of US$353 million.
The company reported that bulk earthworks were approximately 99% complete, while the first phase of the permanent water supply pipeline had reached about 90%.
Approximately 523 contractor personnel were working on the project as construction continued.
The company expects Etango to become a new source of uranium exports from Namibia in 2028, with production divided between its Chinese offtake commitments and sales to other international customers.
