Google translation of a news article from china's XINHUA news...

Google translation of a news article from china's XINHUA news agency - http://news.xinhuanet.com/fortune/2011-04/20/c_121325638.htm

At the nuclear crisis triggered by the revaluation of China Guangdong Nuclear uranium offer overseas; and Rio Tinto spoiler, this had to clear a merger, adding new uncertainty

Financial National Weekly reported March 11 earthquake and tsunami, a heavy blow to the global nuclear power industry. Global stock markets, the uranium mining business in general suffered setback.

4 days ago in the earthquake, China Guangdong Nuclear Power Group ("the China Guangdong Nuclear Power") has just launched with overseas mergers and acquisitions, spending 756 million pounds (about 1.23 billion) acquisition of mining company karaoke Harry (AIM / NSX: KAH).
The sudden nuclear leak in Japan, making China Guangdong Nuclear Power's price looks like "being taken advantage of."
"As a major shareholder, we said the price of China Guangdong Nuclear satisfaction", Asia Pacific Resources Ltd. (01104.HK, the "Asia Pacific Resources"), Chief Financial Officer Wong Wai Keung, told the "Financial State Week." Asia Pacific Resources, is the karaoke Harry mining companies the largest shareholder.
The China Guangdong Nuclear insiders face interview, but seemed cautious. Reuters reported March 24, China Guangdong Nuclear Power, an executive said, they are re-evaluating the tender offer.
However, the "Financial State Weekly" exposed some of the industry experts say that the Japanese nuclear crisis does not change the trend of nuclear power development in China, "high-level opinion is not unworthy."
Zheng Yuhui, director of China Nuclear Energy Industry Association, told the "Financial State Week", "Chinese nuclear power companies to buy uranium resources overseas, we are happy to see."

World's fifth largest uranium plot

Public information, karaoke Harry Mining Corporation (Kalahari Minerals PLC) is both the London Stock Exchange and the Namibian Stock Exchange company. The key assets are held by Extract Resources Limited (ASX / TSX / NSX: EXT, hereinafter referred to as "Extract") of 42.79% of the shares and the North River Resources Plc (AIM: NRRP) 44.9% of the shares.
The company is the China Guangdong Nuclear Extract the ultimate goal. Namibia Husab the company has 100% interest in the project, the project's total uranium resources of 166,700 t 308, the world's fifth largest uranium mine.
China Guangdong Nuclear Power took a fancy to Husab the great potential of the project: Extract the project has received Husab EPL 3138 block of two years of uranium exploration license extension, but has initially confirmed that the region is expected to become the world's three major uranium one of mine.
China Guangdong Nuclear Power official website information, the China Guangdong Nuclear now has the Daya Bay Nuclear Power Station and Ling Ao Nuclear Power Station Phase I, Phase II Ling Ao Nuclear Power Station Unit 1 of a total of 500 million kilowatts of nuclear power generating units in operation. In addition, the Ling Ao Nuclear Power Station Unit 2 Phase II, Liaoning Hongyanhe Nuclear Power Plant Phase I, Ningde Nuclear Power Station Phase, Yangjiang Nuclear Power Station, Taishan Nuclear Power Station Phase, Fangcheng a total of 19 nuclear power plants nuclear power generating units, has been approved by the state, which 16 nuclear power units under construction. Xianning nuclear power projects, Liaoning Hongyanhe Nuclear Power Plant Phase II, Guangdong Lufeng project a total of 6 nuclear power generation is carrying out preparatory work.
"For the China Guangdong Nuclear Power is concerned, the acquisition of nuclear fuel supply to the establishment of autonomous security system, is of great significance", the China Guangdong Nuclear General Office of the Information Office of a person in charge told the "Financial State Week."

Rio Tinto spoiler

This the deal, Rio Tinto has been eyeing.
Published in the China Guangdong Nuclear Power before the acquisition news, Rio Tinto has been mining and Kara Harry Extract to simplify the discussion of the company's shares did, with intent to Rio Tinto's Rossing uranium mine (Rossing uranium mine), and Extract the company's Husab uranium the merger.
Rio Tinto is not only a karaoke Harry's fourth-largest shareholder of the mining industry, holds 11.5% of the shares; Extract Company is also the second largest shareholder, holds 14.7% of the shares; Rio Tinto's Rossing uranium from Extract the company's Husab uranium only a few kilometers away.
China Guangdong Nuclear Power's offer, although to be optimistic about the karaoke Harry Mining, Rio Tinto has obviously touched a nerve.
March 9 , China Guangdong Nuclear released the day the acquisition news, Extract the company's independent directors said the plan recommended by the Ministry to the Australian government regulation to prevent shares of its parent company China Guangdong Nuclear karaoke Harry mining application is approved.
According to relevant provisions in Australia, if the acquisition of China Guangdong Nuclear karaoke Harry mining companies, China Guangdong Nuclear Extract must be sent to the second offer; if investors buy shares of more than 20% of listed companies must fulfill a general offer obligations.

China Guangdong Nuclear One insider told the "Financial State Week": "This will not affect the determination of the acquisition of China Guangdong Nuclear Power, China Guangdong Nuclear Power is the Australian Securities and Investments Commission to seek an exemption. And I think that even if the exemption was rejected, the Guangdong Nuclear also still go on. "

Dog has his day. Sudden earthquake and tsunami in Japan, making the acquisition becomes more and more stories.
In accordance with the China Guangdong Nuclear Power had planned to check the karaoke widely valuation Harry Mining 2.9 pounds per share, compared with March 4 karaoke Harry Mining 11% premium to the closing price, prior to March 4 than 6 months the average closing price premium of about 38%. March 10 , Kara Harry Mining shares had risen to around ￡ 2.99; followed nuclear accident in Japan, making the karaoke Harry Mining's share price nosedive, and soon fell to around 2.09 pounds. April 7, Kara Harry's closing price of 2.43 Mining pounds, 2.9 pounds of the purchase price was overvalued.

With the prospect of widespread global concerns about nuclear power, mergers and acquisitions of other similar contracts in the direction in favor of the buyer to renegotiate. Russia's JSC Atomredmetzoloto uranium acquisition in Tanzania's offer shares shrinking relative to the original 140 million Australian dollars (141 million).
This is precisely the China Guangdong Nuclear emboldened where you want to cut prices. "I think the price is certain, it is also in line with market rules. But how much remains to be seen down both the specific results of the assessment." Office of the Publicity Department of China Guangdong Nuclear charge told the "Financial State Week."
However, as the acquired party karaoke Harry mining companies, there is a completely different view.
Harry Mining Corporation Executive Director Kara Xi Make President told the "Financial State Week": "I think Japan's nuclear accident will not impact of the acquisition, since many countries, including China's nuclear power development plan and there is no change, this will not affect the uranium market demand; and I believe that the accident in Japan, but also lead to a global shortage of uranium supply, because of an accident on the uranium project will reduce the new. "

Wong Wai Keung, told reporters, "If the price is lower than the original ￡2.9 offer, we can not accept." Wong Wai Keung, that, according to British law, if the China Guangdong Nuclear regard to price adjustment, you need to make a new offer; and two Offer must wait between 3 months time, coupled with the original offer, valid for 3 months, must register to take nearly half a year.

Wong Wai Keung, said that to his knowledge, Rio is ready to seek Extract holding company level. If China Guangdong Nuclear back off this time, not only will lose part of the deposit; while Kara Harry and Rio Tinto directors will turn to negotiations - which is obviously not the China Guangdong Nuclear want to see the results.

"In the next few years, the global uranium market, China is the world's most potential market, China has a rigid demand for nuclear fuel." Wong Wai Keung said.

Would also like to go out
The past two years, China Guangdong Nuclear, Nuclear Group Overseas Uranium Ltd., China Steel Group and other state-owned enterprises have focused overseas markets.
The reason is simple: as foreign-made good quality uranium reserves are insufficient; the other hand, the strong development of domestic nuclear power, leading to rapid growth in demand for uranium.
"The development of domestic uranium, but still lags behind relative", the original second Research and Design Institute of Nuclear Industry experts Lier Kang told the "Financial State Week."

According to the report of International Atomic Energy Agency, China's proven uranium reserves of about 10 million tons of mineral deposits are usually small-scale, in theory, only enough to use in 2020, mostly 0.05 to 0.3% in the low-grade ore.

In addition, the domestic uranium exploration for inadequate coverage. Uranium exploration area of the country may be, have been less than 50% of the surface exploration, mining of uranium ore in less than 1000 tons. March 23, the State Science and Technology in Beijing organized a uranium exploration, mining and milling technology seminars. Ministry of Land and Natural Resources to prepare and complement each other, through the national "973" and "863" project and promote the uranium deposits, in pursuit of "five-second" new breakthroughs.

At present, the demand for natural uranium of up to 1,600 tons per year, domestic production can only meet half of the international spot market in China has to buy uranium ore, and foreign suppliers and long-term contracts.

China to establish a stable and reliable supply of uranium ore system, going out became the only choice.
However, the world's proven uranium resources, the majority being developed by the share of mining companies and the world's leading uranium exploration and development of the major markets.

Meanwhile, the global number of emerging economies to develop nuclear power, making the increased demand for uranium will also make the process of going out of China, is facing fierce competition.

But over the next 5 to 10 years, China's real purchasing power will be the global uranium market, the absolute main. "China's influence on the market will grow." Wong Wai Keung said.