Chinese uranium investment nears N$50bn in Namibia

China’s stake in Namibia’s uranium industry has grown to almost N$50 billion after a fresh commitment this week to inject N$6.1 billion into Bannerman Energy’s Etango uranium project near Swakopmund.

The move gives Chinese companies a significant interest in Namibia’s four largest uranium operations.

Since entering the sector in 2012, Chinese firms have invested more than US$2.6 billion, equivalent to nearly N$50 billion, across three operating mines and one advanced development project.

Namibia ranks third globally in uranium production, and it is the only major uranium-producing country where Chinese state-linked entities hold positions across legacy operations, modern large-scale mines, a restarted asset and the next major development pipeline.

The entry began with the acquisition and development of Husab, followed by a strategic stake in Langer Heinrich in 2014, the takeover of Rössing in 2019, and, this week, a commitment of up to US$321.5 million (about N$6.1 billion) to develop Bannerman Energy’s Etango uranium project near Swakopmund.

In 2012, the Chinese state-owned nuclear group China General Nuclear Power Group, through its investment vehicle Taurus Minerals, acquired the Husab project from Extract Resources and advanced it into full-scale construction.

The total acquisition and development cost is widely estimated at around US$2 billion, making it one of the largest single Chinese mining investments on the African continent.

Husab is owned 90% by CGN-linked entities, with the remaining 10% held by Namibia’s state-owned Epangelo Mining Company. When the mine reached production, it fundamentally altered Namibia’s uranium profile, lifting national output and anchoring the country’s rise into the global top three.

Defining feature

When many Western investors were retreating from the sector amid weak prices, Chinese capital took a long-term view, backing a multi-decade asset tied directly to the country's expanding nuclear power programme.

That willingness to invest counter-cyclically would become a defining feature of China’s role in Namibia’s uranium industry.

In 2014, China National Nuclear Corporation (CNNC) entered the Langer Heinrich Mine as a minority partner through CNNC’s offshore investment arm, acquiring a 25% stake in the mine from Paladin Energy for about US$190 million.

At the time, Langer Heinrich was already an established producer, but it would later be placed on care and maintenance as uranium prices collapsed.

CNNC’s entry nevertheless secured Chinese exposure to the asset’s long-term potential and future production, a position that has gained renewed relevance following the mine’s successful restart and ramp-up.

The third and perhaps most symbolically significant transaction occurred in 2019, when Chinese capital moved into Namibia’s oldest uranium mine.

That year, a CNNC subsidiary acquired Rio Tinto’s 68.62% stake in Rössing Uranium for up to US$106.5 million, ending decades of majority Western ownership.

Rössing, which began operating in 1976, is not only a production asset but a cornerstone of Namibia’s mining history, with deep institutional knowledge, infrastructure and export relationships.

Beyond operating mines

Now, Chinese involvement has extended beyond operating mines to future supply through CNNC Overseas Limited's (CNOL) US$321.5 million to fund, develop and operate the Etango uranium project.

The deal establishes a joint venture in which CNNC Overseas will ultimately hold 45% of the Etango operating company, with Bannerman retaining 55% through its UK subsidiary.

Crucially, the staged investment is designed to take Etango through development and into production without reliance on project-level debt during construction, positioning the long-delayed project for a final investment decision and debt-free build.

Etango, one of Namibia’s most advanced undeveloped uranium assets, has been fully permitted for several years but has been held back by financing constraints.

Bannerman has said the CNNC partnership aligns the project with long-term uranium demand through a cornerstone offtake relationship linked to one of the world’s largest nuclear fuel buyers, while preserving Bannerman’s controlling interest and exposure to upside in a strengthening market.

China is not only buying stakes in Namibian uranium mines but is also the dominant destination for Namibia’s uranium exports, reinforcing its influence on both the ownership and marketing sides of the sector.

In 2024, Namibia exported about US$803.24 million worth of uranium ore and concentrate to China, making it the single largest destination for Namibian uranium.

In 2023, China accounted for the largest share of Namibia’s uranium exports, with shipments valued at around US$602.9 million, far ahead of traditional buyers such as France and Canada.

Trade data show that China took about 77% of Namibia’s uranium and thorium ore and concentrate exports in 2023, meaning that roughly three-quarters of Namibia’s uranium export value now flows to China in a typical year.