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Australia's Uran proposes to buy stake in Czech uranium mine

Uran Ltd., an Australian uranium explorer, submitted a proposal to Czech state-owned mining company Diamo SP for the purchase of a stake in the Rozna uranium mine, Europe's only operating mine for the nuclear fuel.

Martin Riman, the Czech minister for mines and industry, is due to hold a press conference on February 22 to comment on Uran's proposal, the Perth-based company said today in a statement lodged with the Australian Stock Exchange. Uran doesn't know what the minister will say, it said. The mine was scheduled to close in 2008, in accordance with a 2005 decision amid low uranium prices and a lack of funds for exploration, Uran said. Spot prices for uranium have more than doubled in the past year due to rising demand for the fuel for nuclear power generation. Riman expects the Czech Republic to prolong uranium mining, Pravo daily reported February 7. „Uran Ltd. does not know what comment the minister is likely to make, or what response is likely from Diamo to Uran's proposal,” Uran Managing Director Kate Hobbs said in today's statement. „We understand the proposal was only received by Diamo on Monday night Perth time.” Shares in Uran, which have surged almost fourfold in the past six months, today rose 3 cents, or 3.2%, to 98 cents on the exchange. (Bloomberg)