Chamwe Kaira
Bannerman Energy Ltd has signed binding investment and joint venture agreements with China Nuclear Overseas Limited to fund the development of the Etango Uranium Project in the Erongo Region.
Under the agreement, CNOL will invest US$294.5 million for a 45% stake in Bannerman Energy (UK) Ltd, the newly formed joint venture company. Bannerman will retain a 55% interest.
CNOL will also reimburse Bannerman up to US$27 million for 45% of approved early works expenditure incurred from 1 July 2025 until completion.
The joint venture company owns 95% of the Etango Project. The project has an initial planned production capacity of 3.5 million pounds of uranium oxide per year. This can be expanded to 6.7 million pounds per year. The mineral resource totals 225 million pounds of uranium oxide.
A steering committee has been formed with three representatives from Bannerman and three from CNOL. The committee will oversee project development in an advisory role. It will be chaired by Bannerman chief executive officer Gavin Chamberlain.
Bannerman will appoint three of the five directors to the joint venture board. It will also nominate three of five executive management positions at the Namibian operating subsidiary, including the CEO.
Future funding will be shared according to ownership, with Bannerman contributing 55% and CNOL 45%. The parties intend to maintain this ratio for both equity and debt financing.
Key matters such as major financial decisions, funding arrangements, the Final Investment Decision, expansion plans and production strategy will require unanimous approval from the board or shareholders.
The transaction is subject to several conditions. These include regulatory approvals from Chinese authorities, shareholder approval from CNUC, clearance from the Namibian Competition Commission, amendment of the OEF funding agreement and execution of key infrastructure contracts. All conditions must be met or waived by 30 September 2026, unless both parties agree to extend the deadline.
As part of the agreement, Bannerman and CNOL have signed a life-of-mine offtake deal. CNOL will receive 60% of actual yellowcake production from Etango for the life of the mine. Bannerman will market the remaining 40%.
Pricing under the offtake agreement will follow a mix of spot and term uranium price indices under market-based terms, with no price floors or ceilings.
The project’s pre-production capital cost is estimated at US$353 million. By 30 June 2025, the project had spent about US$10 million. The CNOL investment will provide the main funding for construction.
Full construction is expected to begin in the second half of 2026. First uranium production is targeted for 2028.
CNNC Group operates 27 commercial nuclear reactors and has 18 more under construction or approved. It is one of the largest uranium consumers in the world and has operated the Rössing Mine in Namibia since 2019.
Caption
CNOL will invest US$294.5 million for a 45% stake in the Etango joint venture. Bannerman will retain 55%.
– Photo: Bannerman
