• CNNC unit to invest up to $321.5M in Bannerman’s Etango project

• Deal includes right to buy 60% of future uranium output

• Move expands China’s uranium footprint in Africa

Australian company Bannerman Energy announced on Thursday, February 12 that it signed an agreement with a subsidiary of China National Nuclear Corporation (CNNC) to establish a joint venture to develop the Etango uranium project in Namibia.

The transaction would allow the Chinese entity to acquire a 42.75% stake in the project for an investment of up to $321.5 million, underscoring Beijing’s growing presence in Africa’s uranium industry.

Prior to this deal, CNNC was already involved in several uranium projects in Namibia and Niger, the continent’s two leading producers of the nuclear fuel. In Namibia, the group holds a majority stake in the Rössing mine and 25% of Langer Heinrich, operated by Paladin Energy. In Niger, it owns 37.2% of the Azelik project alongside ZXJoy Invest, another Chinese investor with a 24.8% stake.

China General Nuclear Power Group (CGN), another major Chinese nuclear company, has owned the Husab mine in Namibia since 2012. The Etango transaction would further consolidate Chinese investments in the country. Under the agreement, CNNC would fund capital expenditures for the future mine in proportion to its equity stake, while Bannerman would retain 52.25% and Namibia’s One Economy Foundation would hold the remaining interest.

The deal also includes a provision allowing CNNC to purchase 60% of Etango’s uranium production over the life of the mine, a strategic clause given China’s long-term uranium supply ambitions.

African uranium for Chinese reactors

As part of its energy transition strategy, China has been expanding nuclear power, viewed as a lower-emission energy source. Beijing plans to increase installed nuclear capacity from about 60 GWe today to 150 GWe by 2035. According to the World Nuclear Association, more than 30 reactors totaling 35 GWe are currently under construction to support that objective.

To secure sufficient uranium for its reactors, China follows a three-pronged approach: producing one-third domestically, obtaining one-third through overseas equity stakes and joint ventures, and purchasing the remaining third on the open market.

Commenting on the partnership with Bannerman, CNNC representative Feng Li highlighted this broader context. “Amid renewed global interest in nuclear energy and the rapid development of China’s nuclear sector, CNNC, as a major supplier of natural uranium, will bring its heritage and technical expertise to this joint venture,” he said.

What comes next

The Etango transaction remains subject to regulatory approvals, including clearance from Namibia’s competition authority. The parties aim to complete the deal by mid-2026 before proceeding to a final investment decision.

Through Etango, Bannerman seeks to develop a mine capable of producing 52.6 million pounds of uranium over more than 15 years.

Meanwhile, production continues at Rössing and Husab in Namibia, while Azelik in Niger has been on care and maintenance since 2015 due to profitability concerns. Although a memorandum of understanding was signed in 2023 between Niger’s government and China Nuclear International Uranium Corporation (SinoU), a CNNC subsidiary, to support a restart, no concrete progress has been announced.

Despite China’s strong footprint, other global powers are also positioning themselves in Africa’s uranium sector. Russia’s state-owned Rosatom signed a memorandum of understanding with Niger in July 2025 covering civil nuclear energy and uranium development. The United States is pursuing a similar path as it seeks to revive its civil nuclear industry. In June 2025, U.S. company NANO Nuclear Energy signed a memorandum of understanding with Namibia, presented as a step toward securing future uranium supplies.

Beyond Namibia and Niger, Malawi has resumed uranium production through the restart of the Kayelekera mine by Australia’s Lotus Resources. Mauritania also aims to join the list of African uranium producers through the Tiris project, currently under development by Aura Energy.

Against this backdrop of competing interests, the ability of African states to safeguard their national interests remains a key issue to watch.

Aurel Sèdjro Houenou