The Etango open-pit uranium mine is targeting commissioning and first yellowcake production towards the end of 2028.
This follows a final investment decision by owner Bannerman Energy and its partner, China National Nuclear Corporation Overseas, approving the US$353-million (about N$5.8 billion) development of the mine in Namibia’s Erongo region.
Minister of industries, mines and energy Modestus Amutse welcomed this development at the official launch and progress update of the mine on Friday, where he said the mine has the potential to make a meaningful contribution to national development.
“With planned production of approximately 3.5 million pounds of uranium oxide annually, the mine is expected to contribute to Namibia’s uranium production capacity once operational,” Amutse said.
Etango offers Namibia, Africa’s largest uranium producer, a new source of export earnings as diamond revenue collapses, while tying most of the mine’s output to Chinese buyers.
Namibia accounts for 12% of global uranium production, ranking third in the world behind Kazakhstan at 39% and Canada at 24%.
Amutse expressed hope that Namibia would overtake Canada when the Etango Mine, 30km south-east of Swakopmund, begins production.
The other top global producers are Australia with 8-9% and Uzbekistan contributing 7%. Together, these five countries account for 85% of global production of uranium.
Bannerman managing director Gavin Chamberlain expressed excitement over the official launch of Etango Mine.
He said the progress of the mine is a significant milestone, describing the investment decision as a defining moment for the company, its Chinese partner and Namibia.
“Today’s final investment decision is a defining moment for Bannerman, for our partner, CNOL, and for Namibia. It is the culmination of more than two decades of exploration, study and disciplined de-risking, and it formally commits the oint venture to full-scale construction of the world-class Etango Uranium Project,” Chamberlain said.
He said Bannerman had over the years raised capital in the equity markets to fund the early bids.
“We’re now in a fully funded situation. We have sufficient funds to take us all the way up to Etango Mine, which is the main reason why we’ve declared the mining as a decision,” Chamberlain added.
Amutse said Namibia had established a strong reputation as a reliable uranium producer and as a destination for responsible, long-term mining investment.
He said a time energy security, decarbonisation and the future of global electricity supply are central to international discussions, as uranium continues to attract considerable attention as a source of fuel for nuclear energy.
This, the minister said, will enable Namibia to strengthen its contribution to international energy markets and attract investment into productive sectors of the economy.
The minister said one of the government’s most important priorities is to ensure the development of the country’s natural resources creates meaningful opportunities for Namibians.
“We must also consider employment, skills development, local procurement, enterprise growth and the broader economic opportunities created along the value chain,” he said.
He expressed satisfaction that of the current 629 people employed on the Etango site, 99% are Namibians.
Amutse said it was encouraging to see Namibian contractors and businesses participating in the construction and infrastructure activities associated with the mine.
“When local businesses participate in major developments, they gain experience, strengthen their capabilities and become better positioned to compete for future opportunities.
“As the Etango Mine continues to advance, let us remain guided by a common ambition: to develop Namibia’s natural resources responsibly, to strengthen our national economy and to ensure that our people remain at the centre of the development process,” he added. – email: matthew@namibian.com.na
