Reliance arm pays $3.45 m to UXA for uranium exploration

May 29, 2008 · Filed Under Reliance Industries · Comment 

Reliance Industries Ltd, has paid $3.45 million (Rs 14.56 crore) in cash to Uranium Exploration Australia Ltd (UXA) to acquire 49 per cent interest in four of the latter’s exploration licences in South Australia.

The payment follows an approval from the Australian as well as the South Australian governments for a ‘farm-in and joint venture agreement” between UXA and RIL Australia.

Reliance, as part of the agreement, will also pay back 49 per cent of the exploration expenditures on the four exploration sites between July 2007 and January 2008.

It will also foot 49 per cent of the expenses for all exploration expenditures on these sites in future, a statement on UXA Web Site said.

Besides, Reliance will also get 49 per cent interest in four other sites in Australia’s Northern Territory if the current licence applications for exploration licences by UXA are found to be in order.

RIL investments

In October last, Reliance had entered into a partnership agreement with UXA. This agreement commits Reliance to make investments along with UXA as and when the markets open up for uranium trade, according to trade sources. According to UXA, Reliance has committed itself to investing $12.9 million (Rs 55 crore) over the next three years following the agreement.

UXA recently discovered uranium in the Northern Territory. The discovery is some 360 km northwest of Alice Springs and the company said it was “well funded in its exploration programme” including Reliance’s investments.

Nuclear power

The Reliance-UXA agreement is an interesting development, coming on the heels of an announcement by the Anil Dhirubhai Ambani Group (ADAG) that Reliance Energy was looking at possibilities of setting up nuclear power stations.

Reliance investment in Australia is looked as part of rising investments by Indian companies, looking for mineral resources to augment raw materials supply.

Gujarat NRE coke has invested in three coal mines to ensure its supply, while Aditya Birla Minerals Group, an arm of Hindalco, operates two copper mines.

Simiarly, the Bangalore-based Mineral Resources Ltd has formed a 50:50 joint venture with Lincoln Minerals for mining in South Australia. Besides, Tata Steel has entered into a joint venture with Riversdale Mining for coal exploration in Mozambique.

Read more: http://www.thehindubusinessline.com/2008/05/28/stories/2008052852230100.htm

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