China resumes talks on Kalahari uranium deposit
- By Yang Xi
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China.org.cn, October 11, 2011
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A model of a nuclear reactor at an exhibition in Changchun, Jilin province. China has 13 nuclear reactors in operation and 25 more in the pipeline.?[Photo/China Daily] |
State-owned China Guangdong Nuclear Power Group is back in talks to bid again for UK-based Kalahari Minerals PLC, China Buisness News reported Tuesday.
The two companies reached a deal in March to acquire a stake in an African uranium deposit at ￡2.90 a share, which valued Kalahari at ￡756 million (US$1.18 billion). But both sides agreed CGNPG could offer ￡711 million (US$1.11 billion), or ￡2.70 a share as valuations of uranium fell after the earthquake and nuclear plant disaster in Japan.
The Chinese nuclear power company withdrew its offer in May after a UK regulator rejected the company's attempt to reduce the offer to ￡2.70 a share.
CGNPG's uranium subsidiary has said it is developing two large mines in the mainland. The move is likely to add as much as 1,000 tons to the country's annual production capacity of the nuclear fuel.
China's business press carried the story above on Tuesday.
