China National Nuclear Corp (CNNC) has agreed to pay USD190 million for a 25% in the Langer Heinrich mine in Namibia from Australia’s Paladin Energy. The deal also allows the Chinese company to purchase its pro-rata share of output at the prevailing spot market price, with the option to buy further supplies at market rates. Australian brokerage Patersons Securities expects CNNC’s investment to give a boost to uranium prices as the Chinese return to the market after a hiatus of two years. The Namibian mine, with a 20-year lifespan, started production in 2007 and has a production capacity of 5.2 million pounds of uranium concentrate a year at present. Paladin said capacity could rise to 5.7 million pounds in 2014. China currently has the largest pipeline of new nuclear reactors worldwide, with 28 under construction, according to the World Nuclear Association. The deal is China’s second major foray into Namibia’s uranium sector, following China Guangdong Nuclear Power Group’s USD2.2 billion acquisition of the Husab mine in 2012. CNNC controls nine of the country’s 17 reactor units and is working on an ambitious reactor construction program.