Ziggy Switkowski backs China’s push for control of Australian uranium

China makes power play for uranium
The Age BARRY FITZGERALD AND MATHEW MURP 9 Sept 09

A BEIJING directive to its mushrooming nuclear power industry to step up the acquisition of strategic uranium supplies has led to an agreed $85 million takeover bid for Energy Metals, the main partner in the Northern Territory Bigrlyi uranium deposit.

The state-owned China Guangdong Nuclear Power Holding Co (CNGNPC) is bidding $1.02 a share cash for up to 70 per cent of Energy Metals and will also underwrite an $11.7 million rights issue at 90¢ a share, which could end up delivering it 73 per cent of the company.

The move is the biggest yet by China into the local uranium industry and follows the agreement that allows uranium exports from Australia to China for the first time. It is expected to be the first of many as China sets about securing uranium supplies for the planned growth of its nuclear power industry.

Ziggy Switkowski, chairman of the Australian Nuclear Science and Technology Organisation, tipped the investment to be ”just the first of many” as China and the world eyes Australia’s uranium to meet its energy needs………………

CNGNPC owns four nuclear power plants and brands itself as a leading green (solar and wind power) and clean (nuclear) power producer in a country where pollution is a huge problem……………………….

The bid is subject to approval from the Chinese and Australian governments. Because Australia has a host of undeveloped uranium deposits, Canberra could welcome the interest of the Chinese.

Australia is also home to the world’s biggest uranium deposit, BHP Billiton’s Olympic Dam mine in South Australia. Analysts continue to suspect that BHP is planning to cut a deal with China to sell it uranium-bearing copper concentrates from a planned $20 billion expansion.

China makes power play for uranium