CHAMWE KAIRA
Bannerman Energy Ltd has confirmed that it has secured supply contracts to cover construction water and power requirements for its Etango uranium project in the Erongo region.
In a quarterly update for the period ending 31 December 2024, the company announced that negotiations for life-of-mine operational water and power supply contracts have progressed as required and are now at an advanced stage.
Regarding water supply, the company said operational water for Etango will be sourced from NamWater and supplied from desalinated sources to the base reservoir in Swakopmund.
From there, the planned permanent Etango water supply infrastructure consists of a pipeline and pumping system to transport the water to the Etango site, and a terminal water storage system on site.
Bannerman said it has been in commercial discussions with NamWater since 2021 regarding the supply of operational water for the Etango Project.
The discussions have now advanced to the signing of a letter of intent with NamWater, which covers full water supply requirements for the operation of the Etango mine and process facility over its initial expected life of 15 years.
“The next step in this commercial process is the execution of a take-or-pay agreement between NamWater and Bannerman, which is planned to be signed upon the taking of a positive Final Investment Decision on Etango,” the company said.
Negotiations with power utility NamPower have now advanced to the confirmation of a definitive supply method between the parties. A commercial proposal based on this definitive supply method is expected to be received from NamPower in the coming weeks, the company said.
Acid supply for the Etango operation is to be sourced locally and/or via import through the Walvis Bay port.
In terms of financing, the company said the financing process continues to progress, with Bannerman evaluating diverse funding options to support the development of the project.
With regards to the uranium market, the company said the fourth quarter of 2024 marked a transformative period for the market, characterised by mounting supply challenges, strategic realignments, and significant nuclear energy policy and technology advancements.
Kazatomprom, the world’s largest uranium producer, has contracted a significant portion of its production with Chinese nuclear utilities, reflective of China’s increasing demand for uranium to support its nuclear energy expansion goals, which include plans to quadruple nuclear capacity by 2035.
“Western utilities, already contending with supply disruptions from geopolitical tensions and logistical challenges, are increasing efforts to secure contracts with alternative suppliers, invest in emerging producers, and explore domestic sources to enhance supply security,” the company said.
Bannerman’s executive chairman, Brandon Munro, commented that favourable market conditions, including long-term uranium prices at a 15-year high, reflect the growing demand for nuclear energy as part of the global energy transition.
