No mention of little BMN in the article, but who know's what the...

No mention of little BMN in the article, but who know's what the Chinese have in their sights?


Lock up your African uranium assets

Robin Bromby
From:The Australian
March 08, 201111:34AM

IS one of our most successful uranium plays in Africa in China's sights?

It looks that way, with Foster Stockbroking this morning suggesting that Extract Resources could be a takeover target for the Chinese state-owned firm CGNPC Uranium Resource after that company lodged a $1.22 billion overnight bid for Extract?s 42.8 per shareholder, London-listed Kalahari Minerals.

Kalahari?s main asset is the Extract shareholding, the Australian company owning the Husab deposit in Namibia, claimed to be the world?s fifth largest known primary uranium deposit. On the other hand, as has been well reported, is the fact that China has highly ambitious nuclear generation plans and needs assured supplies of uranium to feed all its planned reactors.

Traders obviously think EXT could also get a knock on the door, with its shares rising 7 per cent in early trade to $9.91.

Africa is right in the uranium spotlight at present. The continent comprises the world?s third largest uranium supplier to the world, mainly from Niger, Namibia and South Africa, but with Malawi, Tanzania, Zambia and the Central African Republic squaring off to comprise the next generation.

In other African uranium news this morning, African Energy Resources has done a deal with Zambia exploration partner Albidon to take sole control of the Chirundu uranium project whose present resource stands at about 5500 tonnes of contained U3O8. AFR also has the Kariba deposit, and says it wants to step up exploration to expand its uranium resource in Zambia.

Aura Energy reported what it described as strong calcrete uranium values at its ground in Mauritania, with one intersection returning 4m at 0.186 per cent U3O8.

Uranium prices have continued their rebound, the latest spot figure being $US69.75 a pound.

And the Tennessee Valley Authority, which supplies about 9 million homes in the US with electricity, says it will idle a 1000 megawatt coal-fired power station and fast track a 1200MW reactor being built for $US2.5 billion. The TVA says it wants to lessen its use of coal and expand nuclear, aiming to have the latter capacity at 5900MW by 2029.



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The writer implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice. The writer does not own shares in any company mentioned.


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