Chamwe Kaira
Bannerman Energy Ltd, developer of the Etango uranium project, has signed two binding contracts to sell one million pounds of uranium oxide over five years from 2029 to 2033.
The offtake agreements were concluded with two tier-1 North American power generation companies.
The company said the agreements provide delivery flexibility, allowing it to preserve capacity ahead of a final investment decision at Etango.
It added that the contracts include market-related pricing components designed to capture higher forecast uranium prices. Each agreement also allows the utilities to flex volumes up or down by 10% annually.
Bannerman stated that the counterparties are two of North America’s largest energy providers, both Fortune 500 companies with investment-grade credit ratings.
The agreements are subject to regulatory approvals for uranium sales.
Bannerman chief executive officer Gavin Chamberlain said, “The signing of these limited, select offtake agreements (the first for Bannerman) 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.”
The agreements aim to produce uranium at Etango starting from 2028. Etango, located in the Erongo region, 30 kilometres south-east of Swakopmund, holds a mineral resource of 207 million pounds of uranium oxide.
The project has undergone extensive exploration and feasibility work over the past 15 years.
Bannerman received its mining licence for Etango in December 2023 and has since begun early development works at the site.
Caption
Bannerman Energy has binding contracts for the sale of uranium in North America.
Photo: Bannerman Energy
