Bannerman Energy Ltd has become the first company operating in Namibia to conclude 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.
Chief Executive Officer Gavin Chamberlain said:
“The signing of these limited, select offtake agreements 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,” he said.
The Etango Uranium Project 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 development plan, based on an eight million tonne per annum processing scale and annual output of about 3.5 million pounds of U₃O₈.
A March 2024 scoping study outlined potential expansion to 6.7 million pounds per year.
Bannerman constructed and operated a heap leach demonstration plant to de-risk 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. Production is scheduled to begin in 2028.
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.
