Cameco And Mitsubishi Agree Deal For Australia's Kintyre Uranium Project
Written by NucNet
Monday, 14 July 2008
14 Jul (NucNet): Canada's Cameco Corporation and Japan's Mitsubishi
Corporation have signed an agreement to jointly acquire the Kintyre
uranium exploration project in the state of Western Australia for 495
million US dollars (USD) (311 million euro).
A joint venture in which Cameco has a 70 percent share and Mitsubishi 30 percent bought the Kintyre project from Rio Tinto through a bidding process.
Cameco will operate the project and is funding its USD 346.5 million share of the purchase price through existing credit facilities. Mitsubishi will acquire the remaining 30 percent through its Sydney-based wholly owned unit Mitsubishi Development Pty Ltd, an owner of investments in coal and iron ore.
Cameco said the transaction is expected to close in August 2008 subject to ministerial approval in Western Australia and conclusion of agreements with the Martu people, who are the traditional owners of the land, about 1,250 kilometres northeast of Perth.
Cameco estimates that the project may host potential mineral deposits ranging from 62 to 80 million pounds U3O8 in total, with an average grade between 0.3 percent and 0.4 percent U3O8.
Uranium was first discovered in the area in 1985 and followed up with extensive exploration that identified eight deposits. The project was placed in care and maintenance in 1988 when uranium prices declined below USD 12 per pound. The sale process was initiated by Rio Tinto in 2007.
Development of the Kintyre deposits is subject to state government approval. The Australian Labor Party, which governs Western Australia, permits uranium exploration but continues to oppose new uranium mine development.
"However, Australian governments and political parties generally are becoming more supportive of uranium development," Cameco said.
Related reports in the NucNet database (available to subscribers)
Australian Uranium Project "On Hold" (Business News No. 122.3, 16 October 1998)
Australia's Aborigines In Uranium Mining Talks To Boost Economy (News No. 141, 29 June 2006)
