A pair of Australian mining firms are pushing ahead with plans to build major uranium projects in Namibia, joining Chinese companies in the country, as nations around the world embrace atomic power.

Bannerman Energy Ltd. and Deep Yellow Ltd., both based in Perth, are looking to capitalize on an improved outlook for uranium, which has been recovering from a lengthy slump following the Fukushima disaster in 2011. Analysts now forecast widening supply deficits.

Countries from China to the US and India are betting on nuclear energy as a low-carbon means of meeting growing electricity demand driven by rising incomes, electric vehicles and artificial intelligence. There are also national security considerations for Washington, which wants to cut down imports of enriched uranium from Russia. Better prices have led firms to accelerate mining projects that were delayed or mothballed during the downturn.

Bannerman expects to close a deal with China National Nuclear Corp. before the end of the month to co-develop the Etango uranium mine in the southern African nation. “It’s a defining moment,” Chief Executive Officer Gavin Chamberlain said in an interview. “Effectively, we are moving forward debt free for construction,” he said.

Namibia, the world’s third-biggest uranium producer after Kazakhstan and Canada, has three operating uranium mines.

If Bannerman’s joint venture is finalized, CNNC will acquire a 45% interest in the subsidiary holding 95% of Etango and will contribute up to $321.5 million towards building the mine. The state-owned giant, which manages an expanding fleet of nuclear reactors in China, will secure the right to acquire 60% of the output from Etango, which could be commissioned as soon as 2028.

Deep Yellow Ltd.’s nearby Tumas project is a little less advanced but targeting a final investment decision towards the end of the year.

There’s “no doubt China will continue to build out these reactors,” Deep Yellow CEO Greg Field said in an interview, adding it’s “inevitable” more countries will follow suit. “As the supply-demand gap widens, we’re going to end up with higher uranium prices, which will make some of the lower grade ore bodies more plausible”

CNNC already owns 25% of the Langer Heinrich operation in Namibia, which is controlled by Australia’s Paladin Energy Ltd., and reopened in 2024 after a six-year hiatus. It also has a majority stake in Rossing Uranium, which has been producing for five decades. The country’s biggest mine, Husab, belongs to China General Nuclear Power Group.

“Everyone is now happy to put the shovel in the ground,” said Gabi Schneider, executive director of the Namibian Uranium Institute, a body representing the uranium industry.

Namibia, which imports most of its electricity and doesn’t generate any nuclear power, is eager to harness domestic uranium. The country’s small population and limited finances, however, mean that small modular reactors, or SMRs, could be more suitable than a conventional facility.

Although the deployment of SMRs is still some way off, they “have the potential to be a major part of the growth for nuclear power by the mid- to late-2030s,” perhaps reaching 10% to 15% of the total market, said Jonathan Hinze, president of UxC LLC, which tracks uranium prices and market activity.

Tech giants including Meta Platforms Inc. and Alphabet Inc. are backing the cheaper, factory-built reactors as they scramble to lock in electricity for AI data centers.

Etango and Tumas will each produce about 3.5 million pounds of uranium a year — equivalent to more than 4% of worldwide mined supply in 2025. Etango is considering an expansion option that would almost double its capacity.

Bannerman, which began early works construction at Etango more than two years ago, still needs to sign up customers for most of its 40% share of future output.

“We believe the uranium price is going to continue to climb and the closer you are to production, the better chance you’ve got of securing better prices,” Chamberlain said.

(By William Clowes and Kaula Nhongo)