Bannerman Energy (ASX: BMN) Approves US$353m Etango Uranium Mine

Bannerman Energy has approved full-scale construction of the Etango uranium mine in Namibia, with first yellowcake production targeted for 2028 and the company’s funding commitments covered by existing cash.

The final investment decision commits the Etango joint venture to the Etango-8 development, which is forecast to produce an average of approximately 3.5 million pounds of U3O8 annually. Bannerman owns 55% of the joint venture, while CNNC Overseas holds the remaining 45%. The joint venture owns 95% of the project.

Forecast pre-production capital expenditure is approximately US$353 million, subject to an accuracy range of plus or minus 10%. About US$64 million had already been incurred through early works by September 30, 2026, including cash held in the Namibian subsidiary.

The remaining pre-production expenditure is covered by approximately US$295 million of cash held by the Etango joint venture at the same date, excluding cash in the Namibian subsidiary. Bannerman says construction is fully funded on a debt-free basis.

Cash covers ramp-up requirements

Bannerman’s remaining share of forecast working capital through construction, ramp-up and targeted commercial production is also fully funded. The company held approximately A$175 million at September 30, excluding the Etango joint venture’s cash.

The joint venture is not expected to call on Bannerman for that working capital until most of its own cash has been spent. This leaves the company exposed to construction execution and cost risks, but without a disclosed requirement to secure additional funding under the current forecast.

Early construction work began in January 2024. Bannerman said bulk earthworks were substantially complete, detailed design was well advanced and supporting infrastructure had either been completed or was progressing. Full-scale construction activity is set to commence over the coming months.

The project already has its environmental approvals, while its mining licence was awarded in December 2023. Its planned operation uses conventional open-pit mining and heap-leach processing at a throughput of eight million tonnes per annum.

Production scale and expansion option

The approved Etango-8 design is based on average annual output of 3.5 million pounds of U3O8. A March 2024 scoping study also outlined the capacity to expand annual production to 6.7 million pounds, although that larger development is not the subject of the final investment decision.

Bannerman appointed Danie van Aswegen as chief executive of Bannerman Mining Resources Namibia as the project moves into construction. Van Aswegen has served as the company’s chief operating officer in Namibia since October 2025 and has more than 25 years of mining industry experience.

The appointment adds local project leadership alongside Bannerman managing director Gavin Chamberlain, who previously served as project director for the development of Namibia’s US$2 billion Husab uranium project.