9 March 2011 | Lindsay
Clark
Uranium miner Extract Resources, listed on the Namibian stock exchange,
is 43 per cent owned by Kalahari and will be affected if the merger goes ahead.
Documents detailing the proposed merger released by Kalahari, which is
controlled from the UK, said: “Based in Shenzhen within [China], CGNPC is a
state owned nuclear power producer with material interests in nuclear fuels
procurement and production.”
It added CGNPC’s main business is to manage supply of nuclear fuels and
establish an interest in and support development of commercial resources and
reserves of natural uranium – the substance used to produce nuclear power.
“Extract Resources is developing the Husab Uranium Project, strategically
located within a 50km radius of several world class uranium deposits,” the
document said.
“Given China’s emphasis on diversifying energy sources and its intended
increase in nuclear generating capacity, [CGNPC] is committed to supporting
development of new supply capacity in the natural uranium market in China.”
Extract Resources’ independent directors said they would consider the
implications of the proposed take over of Kalahari, which is valued at £756
million (US$1.2 billion) by the offer.
Uranium supply is likely to become constrained in the next few years as
the UK and US, as well as China, enter into nuclear power capacity building
programmes.
Companies are already moving
to secure supply. In May 2010, Japanese manufacturer Toshiba, which builds
nuclear power stations, announced a $100 million (£62 million) investment in
USEC, a supplier of enriched uranium.
