Chinese firms strike N$5.5bn minerals deals

Chinese mining companies have announced new acquisitions, strategic investments and mine development agreements with a disclosed value of at least US$336.5 million (N$5.54 billion) this year.

The acquisitions extend the Chinese companies' reach across uranium, copper, cobalt, tantalum and fluorspar.

The disclosed figure is based on two transactions whose values have been made public.

These are CNNC Overseas Limited’s US$321.5 million (N$5.29 billion) investment in Bannerman Energy’s Etango Uranium Project and Chinalco (Xiong’an) Mining Corporation’s US$15 million (N$246.9 million) acquisition of Celsius Resources’ 95% interest in the Opuwo Cobalt Project.

It excludes the Xinhai, Huajing and Joint Era Mining transactions, in which the full financial values were either not disclosed or not finalised in US dollar terms.

The largest transaction was announced in February when CNNC Overseas Limited, a subsidiary of state-owned China National Nuclear Corporation, agreed to invest up to US$321.5 million for a 45% interest in Bannerman Energy (UK) Ltd. The company owns 95% of the Etango project.

The package includes a US$294.5 million (N$4.85 billion) equity subscription and up to US$27 million (N$444.4 million) to reimburse qualifying project expenditure. At the same time, CNNC also secures the right to buy 60% of Etango’s life-of-mine uranium production under market-based offtake arrangements.

Etango is one of the world’s largest undeveloped uranium projects, with a mineral resource of 350.5 million tonnes grading 236 ppm U₃O₈, containing about 207 million pounds of uranium oxide.

The project already holds a Namibian mining licence granted in December 2023.

Strategic interests

The deal is significant because it would make Etango the fourth major Namibian uranium venture in which Chinese state-owned nuclear companies hold a strategic interest.

Chinese state-owned companies already have interests in Namibia’s three operating uranium mines. Rössing, where China National Uranium Corporation holds 68.62%; Husab, operated by Swakop Uranium, which is 90% owned by CGN through Taurus Minerals; and Langer Heinrich, where CNNC has held a 25% interest since 2014.

In June, Hong Kong Xinhai Mining Services Limited signed a non-binding term sheet with African Pioneer PLC to finance and develop the Ongombo and Ongeama copper projects.

Under the proposed structure, Xinhai would fund 100% of agreed development milestones, subscribe for 10% of African Pioneer at 1.15 pence per share, and provide a secured project facility that may be repaid through the issue of up to approximately 74% of the project holding company.

Ongombo, located about 40 kilometres north-east of Windhoek, already holds Mining Licence 240, valid until March 2045.

African Pioneer owns 85% of the project, while Vestmin Investments holds 15%. Ongombo has a JORC-compliant mineral resource of 12.1 million tonnes grading 1.13% copper and 0.13 g/t gold, containing about 137 000 tonnes of copper and 50 000 ounces of gold.

Local investments

Xinhai has also entered Namibia’s tantalum sector through Arcadia Minerals’ Swanson Tantalum Project. The binding term sheet gives Xinhai an option to negotiate definitive agreements to construct and commission a gravimetric processing plant and earn up to 70% of the project company through funding and development services.

Swanson has a revised JORC mineral resource of 2.59 million tonnes at 486 ppm Ta₂O₅, together with associated tin, niobium and lithium.

In the Kalahari Copper Belt, Joint Era Mining Company Limited agreed to acquire Noronex Limited’s non-core Witvlei Copper Project for A$4.5 million (N$48.2 million) in staged payments. Witvlei hosts a JORC-compliant mineral resource of 8.8 million tonnes grading 1.28% copper, containing about 112 500 tonnes of copper.

Another 2026 transaction came through Chinalco (Xiong’an) Mining Corporation Limited, which agreed to acquire Celsius Resources’ 95% interest in the Opuwo Cobalt Project for US$15 million (N$246.9 million). Opuwo contains a JORC resource of 225.5 million tonnes grading 0.12% cobalt, 0.43% copper, and 0.54% zinc, with about 259 000 tonnes of cobalt, 970 000 tonnes of copper, and more than 1.2 million tonnes of zinc.

Chinese interest has also reached Namibia’s fluorspar sector. The Namibian Competition Commission approved, subject to conditions, the acquisition of Okorusu Fluorspar by Huajing Investment Limited, with Walvis Bay Minerals (Hong Kong) Limited nominated as the counterpart to the transaction.