By: Nghiinomenwa-vali Hangala
Investors in the Etango Uranium Mine have reached a final investment decision on the production of uranium for the next approximately 18 months.
The mine is prepared to produce approximately 3.5 Mlbs of U₃O₈ (yellow cake uranium).
According to the quarterly report ending 30 September 2026 released by Bannerman Energy, the mine developers, they have decided to develop the mine to operation.
The decision will add to the portfolio of Namibia’s large uranium mines, which are Husab, Rössing, and Langer Heinrich, that are currently extracting yellowcake and supplying the world.
The Etango Mine construction and completion is also expected to reinforce the dominance of the mining sector’s contribution to exports and overall national output (GDP). This contribution includes sectoral composition of exports as well as the mining and quarrying sector.
Uranium dominates Namibia’s export statistics, in August 2026, it contributed 26.5% to total export earnings, with most shipments destined for France and China.
However, export value domination has not translated into fiscal contribution domination.
Commenting on their decision, Bannerman managing director and chief executive officer, Gavin Chamberlain, explained that the decision is a direct function of all the commitment, diligence and energy that has come before it.
“With our early works program transitioning into full-scale build activities, it is timely to recognise our outstanding multi-year execution. Delivered on budget and schedule, the early works program is truly a credit to all that have worked on it,” he said.
Chamberlain added that as Etango moves into full-scale construction, their priorities stay the same: safety, quality and delivery.
Etango is set to be a long-life, large-scale producer in Namibia’s Erongo region, a highly established uranium province, at a time when the world’s utilities increasingly need secure, diversified energy supply.
He also promised to create value for Namibia through all the phases of developing and operating the mine.
“We look forward to constructing and operating a mine that creates lasting value for Namibia and for all our stakeholders for decades to come,” he wrote.
The developers forecast average annual production of approximately 3.5 Mlbs of U₃O₈.
Targeted commissioning and first production from the Etango Project is expected during 2028.
Forecast pre-production capital expenditure for the Etango Project is approximately US$353 million of which approximately US$64 million has already been incurred through early works (to 30 September 2026, including cash held in the Namibian subsidiary).
As for the remaining forecast pre-production capital expenditure, it is funded via existing Etango JV cash of approximately US$295 million (as at 30 September 2026, excluding cash held in the Namibian subsidiary).
Etango Mine is owned by a joint venture. CNOL now holds a 45% interest in the Etango JV, which in turn owns 95% of Etango and 5% (loan carried) is owned by One Economy Foundation.
The Etango JV remaining required working capital share is only set to occur post expenditure of most of the existing Etango JV cash balance.
For this strategic joint venture with CNOL, Bannerman holds binding cornerstone life-of-mine offtake arrangements under which CNOL will purchase 60% of Etango uranium production on arm’s-length, market-based pricing terms.
CNOL offtake volumes will be priced based on a combination of spot and term uranium price indices at the time of delivery, with no price floors or ceilings.
The arrangements also provide attractive payment terms and delivery flexibility, which are expected to reduce working capital requirements and optimise value.
Developers are always cognizant of commodity prices; spot U₃O₈/uranium oxide prices remained relatively stable during the September 2026 quarter, opening at US$85.25/lb and trading within a range of US$83.50/lb to US$87.00/lb.
The spot price closed the quarter at US$89.75/lb.
The developer research team believes that long-term price reference remained firm during the September quarter, holding steady at US$97.00/lb at 30 September 2026, unchanged from 30 June 2026.
erastus@thevillager.com.na
