paladin sells 25% uranium stake for $190m

Just a reminder of, how much the chinese are willing to pay for uranium assets.

Paladin Energy Ltd. : China Nuclear Firm in Africa Uranium Deal, 01/20/2014

SYDNEY--China National Nuclear Corp. bought a large stake in one of Africa's biggest uranium mines in a deal that gives the state-owned generator better access to cleaner-burning energy that Beijing is eager to promote.

A unit of China National Nuclear Corp, or CNNC, bought 25% of the Langer Heinrich operation in Namibia from Paladin Energy Ltd., the Australian uranium producer said Monday.

CNNC is one of China's largest generators of nuclear energy, and has been rapidly expanding its fleet of reactors at a time when the world's No. 2 economy is trying to reduce reliance on coal for its ballooning energy needs.

The $190 million deal allows CNNC to buy a quarter of the Namibian mine's output at the prevailing spot-market price--which can often be cheaper than negotiated long-term contracts--with the option to buy more at normal market rates. Paladin still owns the remaining 75% of Langer Heinrich.

China's leaders have recently stepped up efforts to introduce cleaner energy, while penalizing polluters more harshly after the worst smog in recent memory hit cities like Beijing last year threatening a political backlash. Up to 80% of China's energy is produced by burning coal.

Beijing's strengthening rhetoric on pollution underscores top-level-leadership concerns that environmental problems represent a growing threat to economic prosperity and social stability, and a deviation from the growth-at-all-costs philosophy followed for years.

China now has the largest pipeline of new nuclear power plants in the world. There are 20 reactors in operation on the mainland and another 28 under construction, according to the World Nuclear Association, an industry body.

"China has ambitious nuclear-electrification programs extending for decades into the future," Paladin said Monday. "Obtaining direct access to sufficient global uranium supply is an essential element for China to be able to safeguard and grow this strategically important sector."