Bannerman and Chinese partner approve $353 million uranium mine in Namibia
By Sadaf Sundas Riaz — SCN NEWS
WINDHOEK— Australian mining company Bannerman Energy and its Chinese partner have approved the development of Namibia's Etango uranium mine, committing to a project with estimated pre-production capital costs of US$353 million and secured financing as the companies move to establish a major new source of uranium for the international nuclear energy market.
Bannerman announced on Friday that the Etango joint venture, formed with CNNC Overseas Limited, had reached a positive final investment decision for the mine in Namibia's Erongo region. The approval authorises the transition from preparatory works to full-scale construction under the Etango-8 development plan, which is designed to produce an average of approximately 3.5 million pounds of uranium oxide annually.
The decision brings a significant mining development into the construction phase in a country already established as an important uranium supplier. Etango is located approximately 30 kilometres southeast of Swakopmund and is being developed through an open-pit mining and heap-leach processing operation. The companies are targeting commissioning and first production of uranium concentrate, commonly known as yellowcake, during 2028.
Bannerman holds a 55% interest in the Etango joint venture, while CNNC Overseas Limited owns 45%. The joint venture controls 95% of the mining project, with the remaining 5% held by Namibia's One Economy Foundation. CNNC Overseas is part of China's state-owned nuclear industry, giving the development a direct connection to international nuclear fuel supply chains.
The project's financial arrangements are a central part of the investment decision. Bannerman estimates pre-production capital expenditure at approximately US$353 million, with an indicated accuracy range of 10% above or below that figure. About US$64 million has already been spent on early works, leaving the remaining forecast construction expenditure covered by existing joint venture cash resources.
At September 30, the joint venture held approximately US$295 million in cash, excluding funds in its Namibian subsidiary. Bannerman separately reported approximately A$175 million in cash available to cover its remaining share of working capital through construction, commissioning and the planned transition to commercial production. The company said the current financing structure allows development to proceed without project debt.
Bannerman Managing Director and Chief Executive Gavin Chamberlain described the investment decision as a major milestone for the company, its Chinese partner and Namibia. He said extensive exploration, engineering studies and preparatory work had brought the project to a point where construction could proceed with financing in place and established technical plans.
The mine has undergone a lengthy development process, including feasibility assessments, environmental studies and testing of the processing method selected for commercial operations. Bannerman said bulk earthworks are substantially complete, detailed engineering is well advanced and supporting infrastructure is either finished or progressing towards completion.
The approved Etango-8 design is based on processing approximately eight million tonnes of ore annually. Uranium will be recovered through a conventional open-pit operation using acid heap-leach technology, with the production target derived from the project's definitive feasibility study. The company has also examined potential expansion options, but the final investment decision applies specifically to the Etango-8 development rather than a larger production scenario.
The project holds a mining licence granted in December 2023 and has received environmental approvals for the proposed mine and associated infrastructure. These approvals provide the regulatory basis for construction, although the companies remain responsible for meeting applicable environmental, operational and safety requirements as work progresses.
Bannerman has appointed Danie van Aswegen as chief executive of Bannerman Mining Resources Namibia, strengthening local project leadership as construction activity expands. Van Aswegen has more than 25 years of mining industry experience and has served as the company's Namibia chief operating officer since October 2025. His responsibilities will include overseeing project delivery alongside the wider Bannerman and joint venture management teams.
Etango's development also highlights the growing role of international partnerships in financing African mineral projects. CNNC Overseas brings financial backing and access to the nuclear fuel market, while Bannerman contributes the project development work and operational planning undertaken over years of exploration and engineering assessment.
The joint venture has an offtake framework linked to future uranium production, providing a commercial arrangement for part of the mine's expected output. Actual production volumes and financial returns will depend on the construction programme, operating performance, uranium market conditions and the successful commissioning of the processing facilities.
Namibia's Erongo region is home to established uranium mining operations and infrastructure serving the mineral export industry. The addition of Etango would expand the country's uranium production base and create another source of supply for nuclear power utilities seeking long-term fuel procurement arrangements.
With the final investment decision approved, Bannerman and CNNC Overseas have moved the project from development planning into a funded construction programme. The immediate focus is on completing the mine and processing infrastructure, maintaining project costs and safety standards, and preparing Etango for its targeted start of production.