CHAMWE KAIRA
Bannerman Energy Ltd, which is developing the Etango project in the Erongo has said persistent cumulative supply gap now stands at approximately 150 million pounds of uranium oxide. Namibia stands to gain from increase in demand for uranium is it is one of the world’s largest producers of uranium.
Bannerman said in a presentation to investors that Emerging Small Modular Reactor (SMR) technology is driving further new demand additions. The company added that the industry has lost a decade of uranium exploration and project development post Fukushima.
The other factors that are driving demand for uranium include the fact that producers struggling to match ramping demand and are turning to tight spot market to fill gaps.
Bannerman added that there is increasing government support for nuclear power as a “middle ground” baseload energy source.
The Etango Uranium Project is located, 30 kilometres south-east of Swakopmund. It possesses a World class uranium Mineral Resource endowment of 207 million pounds of uranium oxide.
Etango has benefited from extensive exploration and feasibility activity over the past 15 years. In December 2022, the company completed the Definitive Feasibility Study (DFS) on Etango. The DFS on Etango, which confirmed, to a definitive level, the robust overall viability of development and operation of the Etango. The Etango Mining Licence application was granted in December 2023. This key milestone was followed swiftly by the commencement of early development works at Etango.
Front End Engineering and Design (FEED) studies and Control Budget Estimate (CBE) processes for Etango were completed in June. Completion of FEED and the CBE has refined the outcomes of the Definitive Feasibility Study (DFS) undertaken in late 2022, delivering enhanced accuracy and recency to key cost estimates.
Bannerman is currently undertaking early works construction activities for Etango, in parallel with offtake marketing and strategic financing works streams. Detailed design works for Etango have also now commenced, initially focused on earthworks and civils.
These activities are steadily culminating in a push towards a positive Final Investment Decision (FID) for Etango, market conditions permitting, targeted during 2024.
To reinforce the technical and commercial viability of subsequent expansion, following construction and ramp-up at Etango, Bannerman completed a Scoping Study in February this year outlining two future-phase development options: an expansion of mine and plant throughput to 16 million tonnes per annum and a life-of-mine extension with mine and plant throughput maintained at eight million tonnes per annum.
The Etango Scoping Study has produced robust financial metrics showing the substantial in-ground leverage and scalability of the world-class Etango resource to higher uranium price outcomes.
