by HOU Ruining

China Uranium Co., Ltd. (001280.SZ) said it will invest up to $322 million to acquire an indirect 42.75% stake in Namibia's Etango uranium project, as China expands its nuclear fleet and seeks long-term fuel security.

The Shenzhen-listed miner said its wholly owned unit CNNC International Ltd. has signed a share subscription agreement with Australia-listed Bannerman Energy Limited (BMN.AX) and its subsidiaries, including Bannerman Energy (UK) Limited, which holds the Etango project.

Under the agreement, CNNC International will take a 45% stake in Bannerman Energy (UK), giving it joint control over development of the project.

The total consideration, including equity and shareholder loans, will not exceed $322 million, funded through internal resources and self-raised capital.

Etango, located in Namibia's Erongo region, is among the country's largest undeveloped uranium deposits. The project hosts approximately 80,000 tonnes of contained uranium, has secured a mining license and completed feasibility studies, but has yet to begin commercial production.

The mine is designed to process 8 million tonnes of ore annually, with initial capital expenditure estimated at $343 million.

The move comes as global interest in nuclear energy strengthens amid efforts to reduce carbon emissions and diversify energy supply. China operates the world’s fastest-growing nuclear power fleet and has been expanding access to overseas uranium resources to support long-term fuel security.

Shares of China Uranium closed down 0.76% at 92.64 yuan on Feb. 12, giving it a market capitalization of about 191.6 billion yuan.