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BHP, China Guangdong Nuclear May Explore for Uranium (Update1)

By Wang Ying

June 12 (Bloomberg) -- BHP Billiton Ltd., the world's biggest mining company, may team up with China Guangdong Nuclear Power Group Co. for uranium exploration as China turns to atomic energy to produce electricity, the Shenzhen-based company said.

Guangdong Nuclear, the smaller of China's two atomic-plant operators, is seeking overseas partners including BHP to tap domestic uranium deposits, Zhou Zhenxing, general manager of the company's uranium resources unit, said in an interview in Beijing today. Frank Xu, a Beijing-based BHP corporate affairs officer, declined to comment.

China is intensifying its search for alternative fuels such as uranium to cut its reliance on polluting coal, which generates about 80 percent of the nation's electricity. Guangdong Nuclear is separately in talks with Kazatomprom, Areva SA and Cameco Corp. to explore for uranium, Zhou said.

``Guangdong Nuclear expects to reach long-term purchase agreements with international uranium producers to supplement supplies to meet local demand,'' Zhou said at the China Nuclear Congress in Beijing today. ``We also hope to work with them to jointly develop the fuel.''

The country's demand for uranium will almost double to 4,058 metric tons by 2010 from current levels, Chen Yuehui, deputy general manager of China National Nuclear Corp.'s international uranium unit, said at the conference.

Uranium Deposits

China, the world's second-biggest energy consumer, found 358 uranium deposits since exploration for the fuel began in the 1950s, and reserves now exceed 300,000 tons as of last year. Current stocks are sufficient to meet demand through 2030, China National Nuclear's Chen said.

The nation has yet to assess uranium resources in 40 percent of its territory, Zhou said.

``There is hope for China to develop more big uranium mines in the coming 10 years or so,'' he said.

Guangdong Nuclear will require 4,500 tons to 5,000 tons of uranium a year by 2015 to operate about 20 gigawatts of nuclear capacity, Zhou said.

China National Nuclear is the biggest owner of the nation's nuclear plants already in operation, with a combined capacity of 9 gigawatts.

To contact the reporter on this story: Wang Ying in Beijing at wang30@bloomberg.net

Last Updated: June 12, 2008 06:47 EDT

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