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Bannerman Energy, the Australian uranium development company which is currently developing its Namibian flagship Etango Uranium Project has completed the mine design. The company awaits the issuance of a mining licence by the Namibian Ministry of Mines and Energy(MME) within the current quarter.
Bannerman Energy, the Australian uranium development company which is currently developing its Namibian flagship Etango Uranium Project has completed the mine design. The company awaits the issuance of a mining licence by the Namibian Ministry of Mines and Energy (MME) within the current quarter. This comes as the company announced its submission of the mining licence application to the Ministry for the proposed Etango-8 uranium mine last year in August.
Bannerman has been working constructively with the MME and understands that the Etango mining licence application is in an advanced stage of consideration. Grant of the mining licence is anticipated during the current quarter and will represent satisfaction of the final non-market prerequisite to proceed with comprehensive off-take contracting and project financing activities. The mine design is complete, and the Request For Quotations (RFQs) for the mining contract will be finalised in Q3 2023. The 3D modeling of the plant is progressing on schedule, with a focus on the front-end crushing circuits.
Bannerman now targets to make its final investment decision in the first half of next year, as per a December announcement, moving away from the previous target of the second half of 2023. The construction of the Etango-8 project is still expected to take 34 months to complete, including a detailed design phase. Bannerman’s strategy remains unchanged – advancing Front End Engineering and Design and other key work streams on Etango to deliver currency of quotation and overall development shovel-readiness while maintaining a strong balance sheet liquidity and strategic patience with respect to the satisfaction of key external factors. This approach is advancing Etango towards uranium market permitting and a targeted positive Final Investment Decision during H1 CY2024. Construction of the Etango Project is expected to take approximately 34 months including detailed design.
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Bannerman Energy’s definitive feasibility study (DFS) indicates that it would require more than N$5.6 billion (US$320 million) in pre-production funding. According to the DFS, pre-production capital expenditure (capex) is estimated at US$317 million, up from the previous estimate of US$274 million in 2021. The uranium development company noted that yellowcake term contract liquidity and pricing have also improved but remain restrained in comparison.
