China’s state-owned nuclear industry has secured the right to purchase 60% of uranium production from Namibia’s Etango mine throughout its operating life, following the completion of a US$320.4 million investment that has also given it a 42.75% economic interest in the project.
Bannerman Energy disclosed in its September 2026 quarterly activities report that CNNC Overseas Limited (CNOL), a subsidiary of China National Nuclear Corporation, will purchase the uranium under binding, long-term agreements linked to prevailing market prices.
The arrangement comes as Etango prepares to enter full-scale construction following a final investment decision announced on 23 October, with first production expected in 2028.
Under the Etango-8 development plan, the mine is expected to produce an average of approximately 3.5 million pounds of uranium oxide annually. Based on that production forecast, CNOL’s 60% offtake entitlement would represent approximately 2.1 million pounds annually, although actual deliveries will depend on production levels.
Bannerman will independently market the remaining 40%, equivalent to approximately 1.4 million pounds annually at the forecast average production rate, to other customers.
The company said the Chinese offtake agreement would operate on market-based pricing, using a combination of spot and long-term uranium price indices at the time of delivery, without minimum or maximum price limits.
Bannerman intends to sell its remaining production to a diversified group of buyers, allowing it to retain exposure to international uranium markets.
CNOL completed its strategic investment on 24 September, paying US$294.5 million into the Etango joint venture and a further US$25.9 million to Bannerman as reimbursement for qualifying project expenditure.
The transaction gives the Chinese company a 45% interest in the joint venture, while Bannerman retains 55%.
The joint venture owns 95% of Etango, resulting in underlying economic ownership of 52.25% for Bannerman, 42.75% for CNOL and 5% for Namibia’s One Economy Foundation, whose interest is loan-carried.
The agreement further expands China’s involvement in Namibia’s uranium industry.
China National Nuclear Corporation already has substantial interests in two other Namibian uranium mines. Its subsidiary China National Uranium Corporation acquired a 68.62% stake in Rössing Uranium from Rio Tinto in 2019, while CNOL holds a 25% non-operating interest in the Langer Heinrich uranium mine, acquired in 2014.
The addition of Etango means companies within the Chinese state-owned nuclear group will hold interests in three major Namibian uranium operations or developments.
The Etango agreement, however, differs from outright ownership of uranium production. CNOL’s 60% entitlement is a contractual purchase arrangement, with prices determined by market indices rather than a fixed discount.
Bannerman said the completed financing arrangements provide sufficient funds to construct Etango and bring it into commercial production.
The project has forecast pre-production capital expenditure of approximately US$353 million, of which about US$64 million had been spent by the end of September.
At quarter-end, the Etango joint venture held approximately US$295 million in cash, excluding funds held by Namibian subsidiaries, while Bannerman separately held approximately A$175 million.
The company also completed a A$124 million institutional equity placement in September to strengthen its financial position.
Construction preparations are already well under way at Etango, where approximately 523 contractor personnel are working on the project.
Bulk earthworks are 99% complete, while approximately 14,700 cubic metres of concrete have been poured across the primary crusher and associated processing infrastructure.
The permanent water supply pipeline is approximately 90% complete, and engineering design of the dry processing plant has reached 98%.
Work is also continuing on the project’s electricity supply infrastructure and a sulphuric acid storage and handling facility at Walvis Bay.
Bannerman managing director and chief executive Gavin Chamberlain said the completion of the Chinese investment and joint venture arrangements had placed Etango in a position to proceed with full-scale construction.
“Completion of the landmark CNOL transaction and Etango JV formation during the quarter, coupled with our institutional equity placement, was what delivered the Etango JV and Bannerman to the position of strength from which it confidently took FID last week,” Chamberlain said.
The company expects Etango to begin producing uranium in 2028, adding another source of supply to Namibia’s uranium industry at a time when international utilities are seeking secure, diversified nuclear fuel supplies.
The Chinese investment and associated purchase agreement establish CNOL as both a major shareholder and the principal contracted buyer of Etango’s future uranium production.
