Zhonghe attracts US$34.5m investment
Three Chinese investors have proposed acquiring a combined 37% stake in Zhonghe Resources (Namibia) Development for US$34.5 million, potentially changing the ownership structure of a uranium project that has remained undeveloped since receiving its mining licence in 2012.
The proposed acquisition, lodged with the Namibian Competition Commission on 9 October 2026, involves Wanli Stone (Hong Kong) Resources & Technology Limited, Hong Kong Prosperity Wanli Resources Limited and Beijing Fengcheng Enterprise Management Co., Limited.
The transaction, registered under case number 2026AUG0054MER, is awaiting regulatory determination.
Details of the investment were disclosed by Chinese-listed Xiamen Wanli Stone Stock Company in a corporate announcement published on 14 February 2026, following board approval a day earlier.
Inside the deal
The agreement provides for the acquisition of shares from Zhonghe's two minority shareholders, Springbok Investments and Namibia-China Mineral Resources Investment and Development.
Under the proposed arrangement, Wanli Stone's Hong Kong subsidiary would acquire an 8.5% stake for US$7.08 million, while Hong Kong Prosperity Wanli would purchase 26.5% for US$25.75 million.
Beijing Fengcheng would acquire the remaining 2% for approximately US$1.67 million.
The transaction follows an earlier proposal approved in August 2024, when Xiamen Wanli Stone considered acquiring a 21% interest in Zhonghe for US$17.5 million.
The revised agreement retains the original valuation for that portion while adding a further 16% acquisition for US$17 million.
The two tranches imply different valuations for Zhonghe. The initial 21% transaction values the company at approximately US$83.3 million, while the additional 16% implies a valuation of US$106.3 million.
The Chinese company attributed the revised pricing to changes in uranium prices and market supply-and-demand conditions.
Under the payment arrangements, the investors are required to pay an initial US$27.6 million, representing 80% of the total consideration, subject to stipulated conditions and due diligence.
However, the disclosed terms do not confirm that the funds have been transferred or that the acquisition has been completed.
Ownership changes
The Competition Commission identifies China National Uranium Corporation Limited as the company currently controlling Zhonghe.
The Namibian Uranium Association lists the existing shareholding as China Uranium Corporation Limited with 58%, Springbok Investments with 21% and Namibia-China Mineral Resources Investment and Development with 21%.
If the proposed transaction is completed without other ownership changes, the three incoming investors would collectively hold 37%, while the two existing minority shareholders would retain a combined 5%.
China Uranium Corporation's 58% controlling interest would remain unchanged.
The Competition Commission has classified the transaction as a conglomerate merger, identifying the global uranium supply market as the relevant market.
It also records that the acquiring groups have no existing direct or indirect business presence in Namibia through operations, turnover or asset ownership, based on information submitted with the application.
Long-delayed uranium project
Zhonghe's ML177 mining licence, covering approximately 12,863 hectares in the Erongo Region, was granted on 30 November 2012 and remains valid until 29 November 2031.
The project is located east of Swakopmund, within Namibia's established uranium-producing region, which includes the Rössing and Husab mines.
Despite holding mining rights for nearly 14 years, Zhonghe has yet to begin mine construction. Its environmental documentation attributes the delay to historically unfavourable uranium economics.
Exploration and resource evaluation have nevertheless continued.
