Japanese ups uranium presence in Namibia

ITOCHU, the Japanese corporate giant that also holds 15 per cent in the Kudu gas field, on Friday acquired a 10,3 per cent stake in Extract Resources, developers of Rössing South.

According to the Nikkei business daily the deal is worth 15 billion yen, US$170 million.
Shares of Extract Resources jumped as much as 5,2 per cent on Friday following the transaction, while Itochu shares remained flat.
Extract Resources is developing the Rössing South mine in the Namib, which is scheduled to begin churning out 5 800 tonnes a year of uranium in 2013, more than ten per cent of global production.
Output could eventually reach 220 000 tonnes, making the area one of the world’s most productive sources of the mineral.
An Itochu spokesman said the company aims to obtain marketing rights for uranium from Namibia, mainly for supply to Japanese electric power utilities.
In March, Itochu acquired 15 per cent of Britain’s Kalahari Minerals PLC, which owns 40 per cent of Extract Resources.
The around 8,5 billion yen (US$91,66 million) purchase gave Itochu an effective stake of six per cent in Rössing South.
The deal came as a number of countries, including the United States, are planning new nuclear power plants in a bid to cut carbon emissions.
Japan Oil, Gas and Metals National Corp (JOGMEC) said it would extend four billion yen of loans to Itochu to back the Namibia project, the first time it has given financial aid to a uranium mining development.
‘We believe this project will contribute greatly to the stable supply of uranium needed for the use of nuclear power generation, which is vital for Japan’s efforts to cut carbon dioxide emissions,’ JOGMEC said in a statement.
Kalahari Minerals is the top shareholder in Extract Resources, the Australia-based owner of Rössing South.
Itochu ranks second in the world in annual uranium sales, with about 4 000 tonnes.
Japan in March signed a nuclear pact with Kazakhstan, allowing it to obtain stable supplies of uranium in exchange for nuclear technology.
Rival trading companies Sumitomo Corp, Marubeni Corp, Mitsubishi Corp and Mitsui & Co are involved in uranium mining projects in Kazakhstan, Australia and other countries. – Nampa-Reuters