Australian uranium production company Paladin Energy has signed a memorandum of understanding (MoU) with China Guangdong Nuclear Power Holding Corporation Uranium Resources Company (CGNPC-URC), setting the framework for co-operation in long-term sales of uranium to China.

Paladin said the MoU also paves the way for the possible expansion of joint venture relationships in Australia's Northern Territory with Energy Metals Limited, in which CGNPC-URC, through its subsidiary China Uranium Development Company, holds a 69.34 percent interest.

CGNPC is the premier nuclear utility in China and its reactor build programmes will account for about 50 percent of China's anticipated growth in nuclear power to 2020, Paladin said in a statement today.

CGNPC-URC is a wholly owned affiliate of CGNPC and is responsible for uranium procurement both through purchases of uranium or the development of new mines.

Paladin energy has eight uranium projects - six in Australia, one in Malawi and one in Namibia.