China to take Extract?

[Sparty]

Two China uranium stories today caught my eye...

The first that China will surpass the USA's uranium consumption by 2030 to feed its rapidly growing nuclear power supply industry. The USA is currently the world's largest uranium user with very little of its own production. (I do note that the US has just approved a uranium mill in Colarado). China tripled its imports last year to around 17,000 tons...... (However the US still has enough uranium for decommissioned war-heads to provide enough to sell... see the story below).

The second story, one that should make Extract's investors toes tingle, is the 750 million English pound bid by China's CGNPC to buy out of Kalahari Minerals with its' 42.8% stake in Extract. (I wonder what the FIRB's take on the Chinese state-owned firm CGNPC moving on EXT itself will be? Especially as EXT's dominant asset is in Namibia?)

Does this mean that EXT is in China's sights?

And if so what premium will China pay to have one of the world's largest, economically viable uranium resources?

And would RIO be a happy player?

More posts by Sparty re EXT (http://www.australian-shares.com/forums/search?Search=extract)

I hold EXT

[Sparty]

We the holders of Extract Resources seem to be infor an interesting time with a tussle developing between Rio, Kalahari, China Guangdong Nuclear Power and Extract for majority control of the Hsuab project destined to be the world's second largest uranium mine.

"RBC analyst Adam Schatzker said: "We believe that CGNPC's motivation in acquiring Kalahari is to ultimately gain significant future uranium production offtake. The next logical move will be for CGNPC to acquire Extract."

"This is a play by Kalahari to force Rio Tinto's hand if they can; Kalahari are sellers and they want to get out," said Simon Tonkin at Patersons Securities in Perth.

This time may you live in interesting times may be a blessing rather than an ancient Chinese curse.