KEPCO buys into Canadian uranium producer

SEOUL, July 5 (Yonhap) -- Korea Electric Power Corp. (KEPCO) said Sunday it has
purchased a 17-percent stake in Canadian uranium producer Denison Mines Corp.,
securing a stable source of fuel for its nuclear power plants.
The stake was purchased for US$68 million, said KEPCO, South Korea's state power
monopoly, adding that it has also signed an agreement on strategic alliance with
the Canadian company.
The stake purchase will allow KEPCO to buy about 300 tons of uranium per year
between 2010-2015, or nearly 8 percent of South Korea's annual uranium
consumption.
KEPCO said it will retain the right to purchase uranium from Denison Mines beyond
2016 unless its interest in the company falls below 10 percent.
With the deal, KEPCO can also appoint two board members of Denison Mines and
participate in the Canadian company's mine sales or new investment projects, the
South Korean company said.
According to KEPCO, Denison Mines produces roughly 1,100 tons of uranium per
annum and has mines in the United States and Canada.
Currently, South Korea has 20 nuclear reactors which meet about 36 percent of the
country's electricity needs. The country plans to build eight more reactors by
2016.
(END)