Bannerman Energy (ASX:BMN) and joint venture (JV) partner CNNC Overseas (CNOL) have approved full-scale construction of the Etango Uranium Project in Namibia.
The partners have taken a positive final investment decision (FID) on the development, which carries estimated pre-production capital expenditure of US$353 million ($501.9 million), with a margin of 10% either way.
CEO Gavin Chamberlain says the FID follows more than two decades of exploration, studies, and project preparation.
“With construction fully funded on a debt-free basis, a Tier-1 strategic partner in CNOL and a cornerstone offtake framework on market-based terms, Etango is now set to become the next major greenfield uranium project globally to enter production,” Chamberlain says.
Bannerman expects full-scale construction to begin over the coming months, following early works that included bulk earthworks and supporting infrastructure.
Commissioning and first yellowcake production are targeted for 2028.
Etango is forecast to produce an average of approximately 3.5 million pounds of uranium oxide annually using conventional open-pit mining and heap-leach processing.
The decision follows the completion of a US$320.4 million strategic financing transaction with CNOL in September, as previously reported by Mining.com.au. The transaction established the JV and supports debt-free construction.
About US$64 million had been spent on early works by 30 September. The JV held approximately US$295 million in cash at that date to fund the remaining pre-production expenditure.
Bannerman also held approximately $175 million to cover its share of working capital through construction, ramp-up, and the targeted start of commercial production.
Bannerman Energy owns 55% of the Etango JV, while China National Nuclear Corporation (CNNC) subsidiary CNOL holds 45%. The JV owns 95% of the project, which is located in Namibia’s Erongo region.
Write to France Pinzon at Mining.com.au
Main image: Bannerman Energy
