The Ministry of Mines and Energy has granted a mining license (ML) to Bannerman Energy for its flagship Etango Uranium Project in Namibia.
The grant notification and signed ML 250 documentation according to the company, were received from the Namibian Ministry of Mines and Energy on Thursday.
“The grant of the Etango Mining License represents a milestone event for Bannerman and our valued stakeholders. This moment is the culmination of our unwavering focus on Etango since our initial investment in 2006, all the while maintaining our conviction in the vital role of nuclear power for a better world. Etango is now fully permitted, enabling us to drive key project workstreams towards a Final Investment Decision in parallel with the ongoing strengthening in uranium market fundamentals. I am grateful to the Ministry of Mines and Energy for their ongoing commitment to Etango’s success,” Bannerman Managing Director and CEO, Brandon Munro said.
The Australian uranium development company said the granting of the ML has allowed the company to immediately award two key early works contracts on Etango for a temporary construction water supply and a site access road at a combined value of approximately N$36 million.
The contracts awarded to a local Namibian contractor, following a tender process undertaken earlier this year, will allow for the temporary construction water pipeline to ensure sufficient water is available onsite when the main earthworks and civil contracts commence, and an access road to enable controlled access to the mine site with minimal impact on the surrounding area to be achieved from the start of full construction works.
“Our overall construction schedule remains on track, with this final project permit now complete and the Front End Engineering and Design work meeting our most optimistic expectations. We look forward to site establishment commencing in January, with early works construction proceeding in parallel with other workstreams over the next four to six months,” Bannerman Chief Operating Officer, Gavin Chamberlain said.
“I am delighted that we have awarded the first contracts on Etango to a Namibian construction services business. Namibia is an ideal place to build and operate a uranium mine. I look forward to the next phases of building a uranium business that will deliver significant and long-lasting benefits to all of our key stakeholders, including the Namibian economy and people.”
Both contracts are funded from Bannerman’s existing cash holding of approximately N$458 million (A$37.3 million) as of 30 November 2023.
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.
According to Bannerman’s definitive feasibility study (DFS) DFS, pre-production capital expenditure (capex) is estimated at N$5.5 billion (US$317 million), up from the previous estimate of N$4.8 billion (US$274 million) in 2021.
