China’s state-owned nuclear giant China National Nuclear Corporation is seeking to acquire a 42.75 percent stake in Namibia’s Etango uranium project, reinforcing Beijing’s long-term strategy to secure fuel supplies for its rapidly expanding nuclear power programme.
Australian miner Bannerman Energy said on Thursday it had signed an agreement with a CNNC subsidiary to form a joint venture to develop the Etango project, located in central Namibia.
Under the proposed transaction, the Chinese partner would invest up to US$321.5 million to acquire its stake, subject to regulatory approvals. Bannerman would retain 52.25 percent ownership, while Namibia’s One Economy Foundation would hold the remaining interest.
The agreement also grants CNNC the right to purchase 60 percent of Etango’s uranium output over the life of the mine, a provision that highlights China’s growing focus on securing long-term supply through overseas equity investments rather than relying solely on spot markets.
If completed, the deal would further consolidate China’s already significant presence in Africa’s uranium sector. CNNC currently holds a majority stake in Namibia’s Rössing mine and owns 25 percent of the Langer Heinrich mine, operated by Paladin Energy. In Niger, Africa’s other major uranium producer, CNNC owns 37.2 percent of the Azelik project alongside Chinese investor ZXJoy Invest.
Another Chinese state-owned firm, China General Nuclear Power Group, has owned Namibia’s Husab uranium mine since 2012, making the country a central pillar of China’s overseas uranium supply chain.
Bannerman said CNNC would fund capital expenditures for the Etango mine in proportion to its equity stake. The project is designed to produce 52.6 million pounds of uranium over a mine life exceeding 15 years, positioning it as one of the larger undeveloped uranium assets globally.
China’s interest in African uranium is driven by its ambitious nuclear energy expansion plans. As part of its energy transition strategy, Beijing is increasing its reliance on nuclear power as a lower-emission alternative to coal. China aims to raise installed nuclear capacity from about 60 gigawatts electric to 150 gigawatts electric by 2035.
According to the World Nuclear Association, more than 30 nuclear reactors with a combined capacity of 35 gigawatts electric are currently under construction in China, the largest nuclear build-out in the world.
To secure fuel for these reactors, China follows a three-pronged uranium sourcing strategy: producing roughly one-third domestically, securing one-third through overseas equity stakes and joint ventures, and purchasing the remaining third on international markets.
Commenting on the agreement, CNNC representative Feng Li said the partnership aligned with China’s broader nuclear ambitions. He noted that renewed global interest in nuclear energy and the rapid growth of China’s nuclear sector underscored the strategic importance of long-term uranium supply.
The Etango transaction remains subject to approvals from Namibian regulators, including the country’s competition authority. The companies said they aim to complete the deal by mid-2026 before moving to a final investment decision.
Beyond Namibia and Niger, competition for African uranium assets is intensifying. Russia’s state-owned Rosatom signed a memorandum of understanding with Niger in July 2025 covering civil nuclear cooperation and uranium development. The United States is also stepping up engagement as it seeks to revive its domestic nuclear industry. In June 2025, U.S. firm NANO Nuclear Energy signed a memorandum of understanding with Namibia aimed at securing future uranium supplies.
Elsewhere on the continent, Malawi has resumed uranium production through the restart of the Kayelekera mine by Australia’s Lotus Resources, while Mauritania hopes to join the list of producers through the Tiris project being developed by Aura Energy.
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As global demand for nuclear fuel accelerates, Africa’s uranium-rich states face growing pressure to balance foreign investment with national development priorities, making governance and resource management an increasingly critical issue.
More background to the Etango transactions and why it matters
The Etango uranium project is one of the largest undeveloped uranium assets in Africa and has long been positioned as a strategic future supply source for the global nuclear industry. Located in Namibia’s Erongo region, Etango is owned by Australian-listed Bannerman Energy, which has spent more than a decade advancing the project through exploration, feasibility studies and permitting.
Namibia is already a major player in the global uranium market, ranking among the world’s top producers alongside Kazakhstan, Canada and Australia. The country hosts several large-scale mines, including Rössing, Husab and Langer Heinrich, and has established itself as a politically stable and mining-friendly jurisdiction. This makes Etango particularly attractive to long-term investors seeking secure uranium supply outside traditional Western markets.
Despite its scale, Etango has remained undeveloped largely due to prolonged weakness in uranium prices following the Fukushima nuclear accident in 2011. For years, low prices made it difficult to justify the significant upfront capital required to build a new mine. That dynamic has shifted sharply since 2021, as renewed interest in nuclear energy—driven by energy security concerns and decarbonisation goals—has lifted uranium prices and revived stalled projects worldwide.
Against this backdrop, China’s China National Nuclear Corporation has moved to secure equity positions in uranium assets that can guarantee long-term supply. Under the Etango agreement, CNNC is seeking a 42.75 percent stake through an investment of up to US$321.5 million, marking one of the largest recent Chinese commitments to a greenfield uranium project in Africa.
The structure of the transaction is strategically significant. Rather than acquiring full control, CNNC would become a major minority shareholder while securing the right to purchase 60 percent of Etango’s uranium output over the life of the mine. This approach aligns with China’s broader overseas resource strategy: locking in supply through ownership and offtake agreements while sharing project risk with local and international partners.
For Bannerman, the deal represents a critical de-risking milestone. Developing Etango is capital intensive, and the entry of a state-backed partner with deep technical expertise and access to financing materially improves the project’s bankability. The agreement also reduces Bannerman’s funding burden, as CNNC would contribute capital expenditure in proportion to its equity stake.
The transaction further reflects China’s growing concentration of uranium interests in Namibia. CNNC already holds a majority stake in the Rössing mine and owns 25 percent of Langer Heinrich, while China General Nuclear Power Group controls the Husab mine. Etango would add another long-life asset to China’s Namibian portfolio, strengthening the country’s role as a cornerstone of Beijing’s nuclear fuel supply chain.
From Namibia’s perspective, the deal underscores continued foreign investor appetite for its mining sector, particularly in strategic minerals linked to the global energy transition. However, it also raises familiar policy questions around resource governance, value addition and national participation. Under the proposed ownership structure, Namibia’s One Economy Foundation would retain a minority interest, reflecting efforts to ensure local participation alongside foreign capital.
Regulatory approvals remain a key next step. The transaction must receive clearance from Namibia’s competition authority and other regulators before it can be completed, with the parties targeting mid-2026 for closure. A final investment decision would follow, contingent on market conditions and project financing.
More broadly, the Etango deal illustrates how intensifying competition for uranium is reshaping Africa’s mining landscape. As nuclear power regains prominence globally, projects once sidelined by low prices are becoming strategic assets—drawing interest not only from China, but also from Russia, the United States and other nuclear-consuming nations seeking secure, long-term fuel supplies.
