Reliance in JV with Uranium Exploration Australia: report

01 April 2009

Reliance Industries has entered into a joint venture with Uranium Exploration Australia (UXA) for exploration of uranium in Australia, the largest uranium reserve in the world, an NDTV report said.

The report said the joint venture between RIL Australia, a Reliance Industries Ltd arm, and Uranium Exploration Australia is already in full swing with 8 mines under exploration.

The exploration will have a long gestation period and would involve massive outlay, the report quoted UXA managing director Russell Penny as saying.

"It would probably be 10 years before any successful discovery comes through in terms of uranium production and I would say that our target in terms of size for a new discovery be certainly a mine which is capable of producing more than 1000 tonnes of uranium a year," Penney said.

While the joint venture may also be extended to other mining projects other than uranium in the future, the report said is was still unsure whether the two plan to enter nuclear energy space.

"Their investment in UXA and uranium exploration in Australia is not predicated necessarily on importing Uranium into India or developing nuclear industry in India. Getting into the highly specialised and capital intensive business of building nuclear power station and producing electricity is really a sort of a growth target that is quite a long way away," Penney said.