CNNC's Equity Stake in Namibia's Etango Uranium Mine Receives Final Investment Approval
en.Wedoany.com Reported - On October 23, Australian mining company Bannerman Energy announced that its joint venture with China National Nuclear Overseas Co., Ltd., a subsidiary of China National Nuclear Corporation (CNNC), has made a final investment decision on the Etango uranium project in Namibia, approving the transition to full-scale construction. The project is expected to require pre-production capital expenditure of approximately US$353 million, with planned average annual production of 3.5 million pounds of triuranium octoxide (approximately 1,588 tonnes), and is scheduled to complete commissioning and produce its first yellowcake in 2028.
The Etango uranium mine is located in the Erongo Region of Namibia and adopts the Etango-8 development plan, which envisages an open-pit mining and heap leach production system with an annual ore processing capacity of 8 million tonnes. The project obtained its mining licence in December 2023 and commenced early works in January 2024. Large-scale earthworks are now essentially complete, and detailed engineering design and major supporting infrastructure construction have made progress. Under the latest investment decision, full construction of the main works will commence progressively over the coming months.
The project is jointly invested by Bannerman Energy and China National Nuclear Overseas Co., Ltd., which hold 55% and 45% interests in the joint venture respectively. The joint venture holds a 95% project interest in the Etango uranium mine. China National Nuclear Overseas Co., Ltd. previously completed a US$320.4 million strategic financing transaction in September. The project plans to proceed with construction using existing funds; as of September 30, cumulative expenditure on early works amounted to approximately US$64 million, and the joint venture held approximately US$295 million in cash to fund subsequent construction expenditure.
Bannerman Energy also announced the appointment of Danie van Aswegen as Chief Executive Officer of its Namibian mining subsidiary, responsible for subsequent project construction and operational readiness. The Etango project has established a uranium product offtake framework based on market prices. The construction team will continue to advance mine extraction facilities, the ore processing system and supporting production works in preparation for the planned start of production in 2028.
