UPDATE 1-Itochu to buy 15 pct in Kalahari Minerals - Nikkei Buzz...

UPDATE 1-Itochu to buy 15 pct in Kalahari Minerals - Nikkei
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Companies:EXTRACT RESOURCESITOCHUKalahari Minerals Plc
Topics:CommoditiesMergers & AcquisitionsAsia
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18:18, Thursday 25 March 2010
March 26 (Reuters) - Japanese trading firm Itochu Corp will buy a 15 percent stake for 8.5 billion yen ($92.28 million) in London-based mining company Kalahari Minerals Plc , the Nikkei (news) business daily said.

The move will give Itochu (Munich: 855471 - news) an effective stake of 6 percent in Rossing South, a 60 billion yen uranium mining project Kalahari is undertaking in Namibia, one of the world's richest sources of the radioactive metal, the paper said.

Itochu's investment in Kalahari Minerals (LSE: KAH.L - news) is expected to ensure a stable supply of uranium for Japan.

Kalahari Minerals is the top shareholder in Extract Resources , the Australia-based sole stakeholder in Rossing South.

The deal comes as a number of countries, including the United States, are planning new nuclear power plants, it said.

Production is slated to begin in 2013 at 5,700 tons a year, the equivalent of more than 10 percent of the uranium mined worldwide in 2008, the paper said.

Output could eventually reach 220,000 tons, making the area the world's second-most productive source of uranium, behind a deposit in Australia, the paper said.

Itochu ranks second in the world in annual uranium sales, with about 4,000 tons.

Rival trading companies Sumitomo Corp (Munich: 860364 - news) , Marubeni Corp , Mitsubishi Corp (MBC.IL - news) and Mitsui & (Munich: 853656 - news) amp; Co are involved in uranium mining projects in Kazakhstan, Australia and other countries, the paper said. ($1=92.11 Yen) (Reporting by Shailesh Kuber in Bangalore; Editing by Ratul Ray Chaudhuri