By Jason ScottMay 8 (Bloomberg) -- Korea Electric Power Corp.,...

By Jason Scott

May 8 (Bloomberg) -- Korea Electric Power Corp., South Korea’s biggest electricity provider, said it wants to buy a minority stake in an Australian uranium producer to expand supplies of the nuclear fuel.

“We are very strongly looking at Australian uranium projects,” Chang Joo Ok, vice president of resources development at the utility known as Kepco, said in Perth today. He declined to name potential targets. “We are focusing on companies producing uranium because we need to secure stable supplies. Maybe after that we would look at exploration companies,” he said after addressing a conference.

Australia, the second-largest uranium producer, has scope to expand exports of the nuclear fuel and liquefied natural gas to South Korea and gain from demand for cleaner energy, Resources and Energy Minister Martin Ferguson said April 6. South Korea, which imports 97 percent of its energy requirements, said in December it plans to increase the country’s nuclear power plants to 32 by the end of 2022 from 20 now.

“There’s plenty of potential partners for Kepco in Australia,” said Peter Strachan, a Perth-based analyst for independent company StockAnalysis. “Whatever it takes, from their point of view. They don’t necessarily want to get involved in the mining side, but they want to secure product.” He named Energy & Minerals Australia Ltd. and Toro Energy Ltd. as potential targets.

Korean Visit

Korea Electric wouldn’t be interested in buying a majority stake in an Australian producer, Chang said. The utility may consider participating in the management of a company in which it buys an equity stake by taking a seat on the board, he said.