Bannerman Energy is considering a US$367 million expansion of its Etango uranium project in Namibia that could double annual processing capacity from eight million to 16 million tonnes and increase uranium production to 6.7 million pounds a year.
The proposed expansion, outlined in the company’s investor presentation released on 11 November 2026, would follow the development of the initial Etango-8 operation, which is now under full-scale construction following a positive final investment decision in October.
Bannerman expects the first phase to produce an average of 3.5 million pounds of uranium oxide annually over an initial 15-year mine life, with first production scheduled for 2028.
The larger Etango-16 operation could increase annual output to 6.7 million pounds after expansion, while extending total production to 95.2 million pounds over a 16-year operating period.
The US$367 million represents forecast additional capital expenditure for the expansion, separate from the US$353 million required to develop the initial Etango-8 operation.
Bannerman has not announced a final investment decision on the expansion, which remains a longer-term development option.
Production could nearly double
The proposed expansion would increase annual ore-processing capacity from eight million to 16 million tonnes, allowing Bannerman to extract more uranium from the existing resource base.
According to the company’s technical projections, the expanded operation could produce 95.2 million pounds of uranium oxide over its operating life, compared with 52.6 million pounds under the initial development plan.
At an assumed uranium price of US$95 per pound, the expanded project is forecast to generate US$2.91 billion in post-tax net cash flow over its operating life.
These projections are based on earlier technical studies and remain subject to future investment decisions, market conditions and development requirements.
Bannerman said the expansion could be pursued after the initial mine has entered production and completed its ramp-up.
The company is also examining opportunities to extend mining operations through further exploration at Etango and surrounding prospects, including Hyena, Onjamba and Ompo.
Initial mine fully funded
The expansion plans come as Bannerman moves ahead with construction of the initial Etango operation, approximately 30 kilometres south-east of Swakopmund.
The company confirmed that its remaining pre-production capital requirements are fully funded through existing joint venture cash following the completion of its strategic investment agreement with CNNC Overseas Limited.
The Chinese company invested US$320.4 million in the transaction, including US$294.5 million paid into the Etango joint venture and US$25.9 million reimbursed to Bannerman.
CNNC Overseas holds 45% of the joint venture, while Bannerman retains 55%.
The joint venture owns 95% of the Etango project, with Namibia’s One Economy Foundation holding the remaining 5%.
Bannerman reported that the joint venture had approximately US$295 million in cash at 30 September 2026, while the Australian company separately held approximately A$175 million.
The company said these funds were sufficient to complete construction, ramp-up and the transition to commercial uranium production without additional project debt.
Construction moves towards completion of early works
Bannerman reported that bulk earthworks at Etango were approximately 99% complete, while the first phase of the permanent water supply pipeline had reached about 90%.
Approximately 14,700 cubic metres of concrete had been poured, representing 86% of the requirements for the first two construction phases.
The project had approximately 523 contractor personnel on site, with Namibian companies undertaking major construction activities.
Bannerman is also progressing the design of a 132-kilovolt electricity transmission line and substations under its power supply arrangements with NamPower.
The proposed expansion would build on this initial infrastructure investment, although additional plant capacity and supporting facilities would be required.
The company has not specified when it would make an investment decision on Etango-16.
Its immediate priority remains completing the US$353 million initial development and bringing Etango into production in 2028.
