China wants big stake in our uranium September 16th, 2009...

China wants big stake in our uranium
September 16th, 2009

URANIUM experts are tipping more Chinese investment in the Australian industry following a move from China Guangdong Nuclear Power Corporation for a majority stake in Energy Metals.
The Perth-based explorer's most valuable asset is the Bigrlyi mine in the Northetrn Territory.
High-profile nuclear power advocate Ziggy Zwitkowski described the move as "the first step of many".
In a deal that has won the support of the Energy Metals board and 40 per cent shareholder Jindalee Resources, state-owned CGNPC is seeking to acquire 70 per cent of the company through an off-market takeover bid.
It is offering to pay $1.02 a share, which represents a 60 per cent premium to the average stock price over the past three months.
The $80 million bid, which requires approval from the Australian Foreign Investment Review Board and is conditional on the bidder receiving minimum acceptances of 50.1 per cent, has created controversy.
Nationals Senate leader Barnaby Joyce said Chinese companies were government owned and, therefore, linked to the Communist Party.
He warned against allowing Chinese enterprises to buy stakes in Australian resources companies.
NT Chief Minister Paul Henderson dismissed Mr Joyce's claims as "reds under the bed" scaremongering.
"He's lost in a different era - we're looking to the future."
Dr Switkowski, who is chairman of the Australian Nuclear Science and Technology Organisation, believes more Chinese investment is inevitable in Australian uranium industry.
"There will be more nuclear power used over the next several decades and we're on the way to 1000 reactors so there will be demand for uranium,"he said.
"It is not a surprise that nuclear countries are going to want to have equity in our mines and our operations.
"With China moving in that direction, I think it's just the first step of many."
- George Lekakis