TIRI MASAWI
Chinese investors have strengthened their control of Namibia’s uranium mining industry after a new deal to develop the Etango Uranium project was agreed last week.
The agreement is to form a joint venture between China National Nuclear Corporation (CNNC) and Bannerman Resources, which runs the Etango project in Namibia.
Under the agreement, CNNC Overseas Limited (CNOL), a subsidiary of China National Uranium Corporation and part of CNNC, will partner with Bannerman Energy Overseas Limited to fund, develop and operate the Etango Uranium project.
The two companies will form a joint venture through Bannerman Energy (UK) Ltd. Bannerman will own 55%, while CNOL will own 45%.
The joint venture holds a 95% interest in the Etango project.
CNOL will make an initial investment of US$294.5 million (about N$4.7 billion). In total, CNOL will invest US$321.5 million (about N$5.1 billion) into the Etango project.
Commenting on the transaction, Bannerman executive chairman Brandon Munro said: “The execution of this documentation represents the culmination of the extensive Etango funding workstream we have undertaken over the past two years.”
With this transaction, China now tightens control on Namibia’s uranium mines.
Chinese companies already have major control of Namibia’s other two uranium mines, Rössing Uranium Mine and Husab Mine , which are among the country’s top uranium producers.
At Husab Mine, Taurus Minerals Limited, a Hong Kong-incorporated company and subsidiary of China General Nuclear Power Company and the China-Africa Development Fund, holds 90% through Swakop Uranium. The remaining 10% is owned by Epangelo Mining Company.
Rössing Uranium Mine is majority-owned by China National Uranium Corporation, which bought a 68.6% stake in 2019.
Other shareholders in Rössing include the Iranian Foreign Investment Company (15.29%), South Africa’s Industrial Development Corporation (10.22%), which is seeking to sell, and the Namibian government (3.42%).
Munro said the deal provides funding for the project’s development and supports Bannerman’s plans in the uranium business.
“CNNC is one of the world’s largest uranium consumers and is building more nuclear reactors,” he said.
Munro said CNNC has experience in uranium mining, including operating the Rössing Mine in Namibia since 2019.
“Investment clears the final key step needed for Etango to move towards production and positions it as a major future uranium project,” he said.
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