Paladin Energy Ltd. said it is targeting uranium shipments to China in 2011 after signing a preliminary accord with the nation’s second-biggest builder of nuclear power plants.

Paladin, the Australian mining company producing uranium in Africa, aims to convert a memorandum of understanding with China Guangdong Nuclear Power Group Co. into supply contracts later in 2010 or early next year, Chief Executive Officer John Borshoff said in a telephone interview today. Paladin may then be able to begin shipments in the “latter part” of next year, he said.

“Demand in China is strong,” Borshoff said. “The equation of what they will need to what they’re getting doesn’t stack up.”
The initial agreement with China Guangdong Nuclear may lead to partnership opportunities, expansion of a joint venture in Australia’s Northern Territory and long-term sales, Perth-based Paladin said in an Aug. 5 statement on the deal.

Paladin plans to double uranium oxide production to almost 14 million pounds by its 2016 financial year, from a projected 7 million pounds in the 12 months ending June 30, 2011, the company said in a presentation accompanying the teleconference.
Source:www.bloomberg.com/news