Bannerman Energy has secured a landmark $321.5 million strategic investment from CNNC Overseas Limited to jointly develop the Etango Uranium Project in Namibia, enabling debt-free construction and a market-priced offtake agreement with a Tier-1 nuclear utility.
- CNNC Overseas Limited invests up to US$321.5 million for 45% JV stake
- Debt-free construction pathway for Etango uranium mine
- CNNC to purchase 60% of Etango’s uranium production on market terms
- Bannerman retains 52.25% economic ownership of Etango project
- Transaction completion targeted mid-2026, subject to regulatory approvals
Strategic Partnership Secures Etango’s Future
Bannerman Energy Ltd has taken a decisive step forward in the development of its flagship Etango Uranium Project in Namibia by entering into a binding joint venture and investment agreement with CNNC Overseas Limited (CNOL), a subsidiary of the Chinese nuclear giant China National Nuclear Corporation (CNNC). The deal sees CNOL committing up to US$321.5 million for a 45% stake in the UK-based joint venture company that owns 95% of the Etango project, effectively positioning Bannerman with a 52.25% economic interest.
This partnership not only provides the critical capital needed to advance Etango but also establishes a long-term strategic alliance with a Tier-1 nuclear utility, underpinning the project’s commercial viability and operational expertise.
Debt-Free Construction and Market-Based Offtake
A standout feature of the agreement is the enabling of debt-free construction for the Etango mine. By avoiding traditional commercial debt, Bannerman and CNOL reduce financial risk during the crucial construction and ramp-up phases, while preserving corporate flexibility. This approach is particularly significant given the capital-intensive nature of uranium mining projects.
Moreover, CNOL has secured a life-of-mine offtake entitlement for 60% of Etango’s uranium production, priced on arm’s-length, market-based terms without floors or ceilings. This arrangement offers Bannerman the freedom to independently market the remaining 40% of production, potentially maximising returns amid uranium price volatility.
Leveraging CNNC’s Expertise and Namibian Presence
CNNC’s involvement brings more than just capital. With extensive uranium mining experience, including majority ownership of the Rössing Uranium Mine and a significant stake in the Langer Heinrich Mine in Namibia, CNNC offers deep operational knowledge and established relationships within the region. This local expertise is expected to enhance project execution and open avenues for future cooperation beyond Etango.
Bannerman’s Executive Chairman, Brandon Munro, highlighted the strategic value of the partnership, noting that CNNC’s investment validates Etango’s world-class status and the extensive technical work completed over nearly two decades. The collaboration is anticipated to deliver technical efficiencies and support potential project expansions once steady-state production is achieved.
Next Steps and Regulatory Milestones
The transaction is targeted for completion by mid-2026, contingent on several regulatory approvals including filings with Chinese authorities, Namibian Competition Commission clearance, and shareholder consents. Following completion, Bannerman plans to proceed promptly to a Final Investment Decision (FID) and full-scale construction commencement.
Early works at Etango will continue through the first half of 2026, maintaining momentum as the joint venture prepares to transition from development to production.
Bottom Line?
This strategic alliance with CNNC not only de-risks Etango’s development but also positions Bannerman at the forefront of the global uranium supply chain as nuclear energy demand accelerates.
Questions in the middle?
- How will uranium price fluctuations impact the profitability of the market-based offtake agreement?
- What are the potential timelines and challenges for regulatory approvals in China and Namibia?
- Could this partnership lead to further expansion or new uranium projects in Namibia or beyond?