Etango FID for between August and November 2026, 750 permanent jobs projected

Bannerman Energy says it expects to take a final investment decision (FID) on its Etango uranium project within the next six to nine months, placing the decision window between August and November 2026.

The company positions the project to create up to 1 200 construction jobs and about 750 permanent positions once operations begin.

The FID timeline follows a binding strategic financing and joint venture agreement with CNNC Overseas Limited, a subsidiary of the China National Nuclear Corporation, which is expected to underpin construction and development of the Etango uranium project in Namibia.

Under the deal, CNNC Overseas Limited will invest up to US$321.5 million (about N$5.1 billion) into a newly formed joint venture, acquiring a 45% stake in the entity that owns 95% of Etango.

The investment includes US$294.5 million in new equity funding, with up to US$27 million earmarked for reimbursement of agreed historical project expenditure.

The agreement also grants the Chinese partner a 60% life-of-mine uranium offtake entitlement on market-based terms, while Bannerman retains the right to market the remaining 40% internationally.

Bannerman chief executive Gavin Chamberlain told the media in Windhoek on Monday that the funding arrangement still has “probably six to nine months to run before it’s finalised”, pending the completion of conditions precedent.

“Once the conditions precedent have been met, we will have a final signed contract and at that point in time we will do the FID,” Chamberlain said.

He said the deal structure allows Bannerman to continue developing the project while approvals are finalised, keeping Etango on track for commissioning in 2028 and first uranium sales in 2029.

“The good news about the contract is it’s going to allow me to continue to develop in this period while we’re doing the CPs, to actually continue to develop the project along the current timelines,” he said.

Chamberlain said the transaction is structured on a 55%–45% basis, with the partner contributing its share of costs during the conditions-precedent phase, allowing work to continue ahead of FID.

Regulatory approvals and conditions precedent

The remaining Namibian conditions precedent include finalising a long-term water supply contract, amending a port-side lease agreement with Namport, and securing approval from the Namibian Competition Commission.

“We have to finalise the water supply contract and we have to finalise the lease agreement that we have of Namport for the asset facility in the port,” Chamberlain said, adding that while a lease is already in place, amendments requested by the company are still under consideration.

He said the competition process has begun and argued that the transaction should have a limited local market impact, as the deal was concluded at Bannerman’s UK holding company level.

Chamberlain said Etango’s development trajectory is expected to lift employment from about 450 Namibians currently on site to as many as 1 200 workers during peak construction, before stabilising at around 750 permanent jobs during operations.

He said Bannerman is deliberately structuring construction contracts into smaller packages to enable participation by Namibian contractors and small and medium enterprises, with subcontracting arrangements overseen by main contractors.

“A Namibian mine for Namibians,” Chamberlain said, adding that the company has so far achieved a “100% success rate” in awarding appropriately sized contracts to local firms.

He said all contracts require strict compliance with Namibian labour, safety and minimum-wage laws throughout the contractor and subcontractor chain.

Water supply and environmental design

Chamberlain said Bannerman has a signed memorandum of understanding with NamWater for desalinated water supplied by Orano’s coastal plant.

The construction of a permanent pipeline from Swakopmund to the site is already underway.

“We are already constructing the permanent water line from the base supply camp at Swakopmund through to site,” he said, adding that available desalination capacity is sufficient to supply Etango alongside existing mines and municipalities.

Chamberlain said the project will use heap-leach processing, with environmental approvals in place, including lined pads, drainage layers and collection systems designed to prevent seepage.

He said Etango will operate a progressive heap-leach system using five-metre cells rather than high stacked heaps.

He also clarified that Etango-8 is currently designed around a 15-year mine life, with optional expansion pathways that could alter production rates and life-of-mine outcomes depending on uranium prices and decisions taken after production begins.

Chamberlain said the remaining amount required to reach FID is about US$315 million, excluding additional working capital that may be needed between commissioning and first revenues.

“The financial investment decision is the remainder that we have to still fund is in the region of US$315 million,” he said.