Bannerman secures US$320.4m CNNC backing for Namibia’s Etango uranium project

Australian uranium developer Bannerman Energy has completed a US$320.4 million strategic investment and joint venture transaction with CNNC Overseas Limited (CNOL) to fund the development and operation of the Etango Uranium Project in Namibia.

The deal brings the project a major financing partner in China National Nuclear Corporation (CNNC), through its subsidiary CNOL, and is expected to enable the construction of Etango without project debt.

Under the transaction, CNOL will hold a 45% interest in Bannerman Energy’s UK-based joint venture company, while Bannerman retains a 55% interest. The joint venture holds a 95% interest in the Etango project.

The partnership also includes a long-term, market-based offtake arrangement under which CNOL will take 60% of Etango’s uranium production over the life of the project.

Bannerman Executive Chairman Brandon Munro said the agreement provides the project with a stronger financial position as it moves towards construction.

“Debt free construction of Etango substantially reduces the financial risk profile during construction and ramp-up,” said Munro.

He added that the agreement also provides an “excellent core offtake arrangement” from which the company can begin future production operations.

For CNNC, the deal gives the Chinese nuclear group a significant position in another uranium project in Namibia, one of Africa’s established uranium-producing countries. CNNC already has interests in Namibia through the Rössing uranium mine.

Vice President of CNUC Feng Li said the agreement was the result of “long-term communication, close collaboration, and, above all, mutual trust” between the two companies.

“The Etango Project stands out with its strong resource base, proven and mature mining and processing technologies, and significant potential for follow-up development,” said Li.

He said the companies would combine their capabilities in resource development, technology, management and operations to deliver the project.

Etango is located in Namibia’s Erongo Region, about 30 km south-east of Swakopmund, within an established uranium mining district. Bannerman’s current mineral resource stands at 207 million pounds of contained uranium oxide (U₃O₈).

The project’s 2022 Definitive Feasibility Study supports conventional open-pit mining and heap-leach processing at a throughput of 8 million tonnes per year, with planned average production of about 3.5 million pounds of U₃O₈ annually. The project is designed for an initial mine life of more than 15 years, with further expansion potential.

Bannerman has already moved into early construction works. By June 2026, the company said more than 560 personnel were working on site, bulk earthworks were about 92% complete and construction of key processing infrastructure was progressing.

The project also has its mining licence and environmental approvals in place, while Bannerman has been progressing permanent water supply and other infrastructure needed for the operation.