China National Nuclear Corporation’s entry into the Etango Uranium Project will only proceed after meeting a series of conditions designed to ensure that Namibia derives tangible economic benefits from one of the country’s largest undeveloped uranium deposits, according to the Namibia Competition Commission (NaCC).
In its published reasons for approving the transaction, the Commission said it had cleared the establishment of a joint venture between CNNC Overseas Limited (CNOL) and Bannerman Energy (UK) Limited after concluding that the deal would not substantially lessen competition in the global uranium market. However, it attached conditions requiring the project to deliver measurable benefits for Namibia through employment, skills development and greater participation by local businesses.
The transaction will see CNOL acquire a minority shareholding and joint control of Bannerman Energy (UK), which controls Bannerman Mining Resources (Namibia), the owner of the Etango Uranium Project near Swakopmund.
CNOL forms part of the China National Nuclear Corporation (CNNC), one of China’s largest state-owned nuclear enterprises, whose Namibian interests already include majority control of Rössing Uranium through CNUC Namibia Mining Limited, as well as Zhonghe Resources Namibia Development and China Nuclear Engineering Corporation Namibia.
Although the Commission classified the transaction as a horizontal merger because both parties operate in the uranium sector, it found that the project is still in the development phase and is therefore not yet competing in the production or sale of uranium.
Instead, NaCC concluded that the merger is more likely to unlock investment in a project that has remained on the drawing board for years while supporting Namibia’s ambitions to expand uranium production.
“The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking acquiring or strengthening a dominant position in the market,” the decision states.
Rather than approving the transaction unconditionally, the Commission said the expected public benefits justified attaching legally enforceable commitments intended to ensure that Namibians benefit directly once construction and mining begin.
According to the Commission, the conditions focus on workforce localisation, skills development and increasing the participation of Namibian suppliers, small and medium-sized enterprises and historically disadvantaged persons throughout the project’s value chain.
The Commission said these measures were designed to ensure that the anticipated investment translated into “tangible and meaningful outcomes for Namibians”, including employment creation, technology transfer and broader economic growth.
Etango is one of the world’s largest undeveloped uranium projects and has been fully permitted for several years. Bannerman has been positioning the project for development as uranium market conditions improve, while the CNNC partnership provides both technical expertise and financial capacity to move the project closer to construction.
The approval also strengthens China’s already significant footprint in Namibia’s uranium industry. Besides its majority ownership of Rössing Uranium, the Chinese nuclear group has interests in uranium exploration, mine development, and nuclear engineering services in Namibia, with Etango now the latest strategic asset in its growing portfolio.
