By: Nghiinomenwa-vali Hangala
The Etango Uranium Project, currently under development in the Erongo Region, has signed two offtake agreements to supply two North American electricity producers with uranium once operational.
The mine developer and main shareholder, Bannerman Energy, announced in a statement last week.
The uranium offtakers are two of North America’s largest energy providers, both of which are Fortune 500 companies with investment-grade credit ratings and extensive power generation.
According to the statement, the two offtake agreements cover one million pounds (lbs) of uranium (in aggregate) targeted to be produced by the Etango Uranium Project from 2028 onwards.
The Etango Definitive Feasibility Study (DFS) was completed on the Etango-8 Project, confirming the mine’s conventional open-pit mining and heap leach processing of the Etango deposit at 8 million tonnes per annum (Mtpa) throughput (for an average annual output of 3.5 Mlbs U3O8).
In 2024, a scoping study demonstrated the capacity to expand annual production to 6.7 Mlbs U3O8.
Given the volatility and changes, each agreement includes an option in the utility’s favour to flex up or down by 10% in each year, the statement read.
Moreover, both contracts are structured as base price contracts with escalation provisions based on the US GDP-Implicit Price Deflator (GDP-IPD).
“The escalation provisions do not come into effect until the start of the 5-year offtake term,” the statement revealed, adding that the base price is broadly reflective of the current level of long-term uranium price indices.
Commenting on the offtake agreement, Bannerman’s chief executive officer, Gavin Chamberlain, said the signing of the select offtake agreements (the first for Bannerman) with the energy utility counterparties represents a further important step in the systematic advancement of Etango towards a targeted Final Investment Decision.
“We are able to demonstrate to potential customers a strong foundation for confidence in our ability to meet future supply commitments,” he stated.
Chamberlain added that the combination of growing global nuclear demand and ongoing tightening in uranium markets further reinforces the mine’s position as a strategic, long-term supplier to major utilities.
Bannerman’s marketing strategy is to progressively but flexibly secure a top-tier portfolio of uranium sales agreements that align with long-term market fundamentals, while balancing price exposure and revenue stability.
With the new offtake agreements, Namibia’s uranium export to North America is expected to increase from the current level.
In July 2025, Namibia exported N$3.3 billion worth of uranium or thorium ores and concentrates, an increase from N$3.1 billion exported in June 2025, according to the trade statistics as prepared by the Namibia Statistics Agency.
For 2025, uranium has dominated as the top export for Namibia according to the trade statistics.
North America, France, and China are the biggest consumers of Namibia’s uranium. erastus@thevillager.com.na
