30 July 2026 – Xinhai Mining has signed a financing and mine development agreement with African Pioneer Plc (LSE: AFP) to jointly develop the Ongombo and Ongeama copper projects in Namibia.
The agreement marks another step in Xinhai's "Resources + Services" strategy, combining its EPC+M+O expertise with direct investment in high-quality mineral assets. Following the announcement, African Pioneer Plc's share price rose from GBP 1.075 to GBP 2.556, an increase of more than 137%.
(Africa Pioneer Mining Stock Price Trend)
The project is expected to require an initial investment of approximately US$55 million. Xinhai will acquire a controlling interest in the joint venture and lead project delivery, covering exploration, resource expansion, engineering, equipment supply, mine construction and commissioning.
The Ongombo and Ongeama projects are located just 25–30 km from Windhoek, Namibia's capital, within the well-known Matchless Amphibolite Belt, which hosts several established copper deposits and mines.
Their proximity to existing roads, power infrastructure and the capital provides practical advantages for project development, reducing the need for major supporting infrastructure before construction.
Ongombo is a stratabound copper-gold-silver massive sulphide deposit hosted in magnetite quartzite, with chalcopyrite as the principal copper mineral. The deposit has relatively low oxidation and already holds Mining Licence ML 240, allowing development to move into the execution stage.
Located nearby, Ongeama shares a similar geological setting. Historical drilling has identified shallow mineralization and locally higher gold grades, highlighting potential to expand future open-pit resources. The two deposits are planned to be developed together to improve operating efficiency and maximize project value.
An independent JORC (2012) Mineral Resource Estimate reports that the Ongombo Project contains approximately 28.7 million tonnes of Mineral Resources.
Using metal prices available on 29 July 2026—approximately US$13,745/t copper, US$4,025/oz gold and US$57.25/oz silver—the resource averages approximately 1.22% copper equivalent (CuEq), representing about 350,000 tonnes of contained copper equivalent metal.
Copper equivalent values are calculated using prevailing metal prices to illustrate the combined value of polymetallic mineralization. They do not represent economic recoverability. Mineral Resources are not Mineral Reserves.
Approximately 20% of the current resource is classified as Indicated, while the remaining 80% is Inferred. This provides a solid foundation for development while leaving significant upside through infill drilling, deeper exploration and step-out drilling.
Previous studies have also identified opportunities to expand near-surface mineralization at Ongombo, particularly to the northeast of the planned open pit. At Ongeama, shallow mineralization and encouraging gold grades provide additional exploration potential that could further enhance the combined project.
Xinhai will lead exploration, engineering and project delivery for both deposits. The programme includes at least 10,000 metres of drilling to improve geological confidence, upgrade Mineral Resource classifications and test extensions beyond the current resource envelope.
The project will be delivered under Xinhai's EPC+M+O (Engineering, Procurement, Construction, Mine Management and Operations) model, integrating metallurgical testwork, engineering design, equipment manufacturing, procurement, construction, commissioning and operational support.
The development plan includes an integrated mining, mineral processing and tailings management system designed to treat 720,000 tonnes of ore per year, together with the first-stage underground decline development at Ongombo.
With the mining licence already in place, Xinhai plans to accelerate detailed engineering, construction preparation and equipment mobilization, targeting first production around the 2028 Chinese New Year.
Over nearly 30 years, Xinhai Mining has built an integrated mining services platform covering metallurgical testing, mine design, equipment manufacturing, mine construction, tailings management, installation, commissioning and mine operation, with projects delivered across Asia, Africa, South America and other mining regions.
The company is now accelerating its "Resources + Services" strategy by combining engineering expertise with long-term resource investment. Rather than participating only as a contractor, Xinhai is taking a leading role in developing high-quality mineral assets and creating value throughout the entire mine life cycle.
This follows Xinhai's agreement signed in March 2026 with East Star Resources Plc (LSE: EST) to develop the Verkhuba Copper Project in Kazakhstan. Under that agreement, Xinhai plans to invest approximately US$65 million to build a 1.0 Mtpa mining and processing operation while acquiring a 70% interest in the joint venture.
The Namibia agreement further expands Xinhai's international copper portfolio and reflects the company's broader transition from an integrated mining services provider to a mining development partner with capabilities spanning resource investment, engineering delivery and long-term mine operation.
As demand for critical minerals continues to grow, Xinhai will continue seeking high-quality resource opportunities worldwide while delivering practical, efficient and sustainable mining solutions for its global partners.
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