China's CGN looking for more Canada uranium deals

Sun Mar 6, 2016 8:10pm EST
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By Rod Nickel

TORONTO, March 6 (Reuters) - China's CGN Mining Co Limited , the first direct Chinese investor in a Canadian uranium project, is interested in buying stakes in more Canadian companies, a company official said on Sunday.

CGN bought a nearly 20 percent stake for C$82.2 million ($61.63 million) in Fission Uranium Corp, Fission said in December.

"Of course we have interest but it depends on their price," said Jianhua Xing, deputy general manager of CGN Uranium Resources Co Ltd, when asked about companies such as NexGen Energy Ltd and Mines Denison, which have uranium development projects in northern Saskatchewan.

"We don't have a specific plan. We're not in a hurry," he said in an interview on Sunday in Toronto during the annual Prospectors & Developers Association of Canada (PDAC) convention.

China is briskly building a fleet of new reactors that will operate on nuclear fuel.

There are limits, however, on foreign involvement in Canada's uranium industry.

Canada does not allow foreign companies to be majority investors in operating uranium mines, although it has made exceptions for France's Areva SA and Australia's Paladin Energy Ltd.

CGN has raised the issue of foreign investment with Canada's embassy in Beijing, but will accept Canada's position, CGN's Jianhua Xing said.   Continued...