Local firm beats big names to Brazil uranium mine

"Exports should become possible at a later phase when the project guarantees meeting the country's needs," an INB spokeswoman said.

Santa Quiteria in the northeastern Ceara state would churn out 800 tonnes of uranium in 2011 and then gradually boost output to 1,600 tonnes later, allowing Brazil to export over 1,000 tonnes of excess metal.

Brazil's third atomic reactor should go on-stream around 2014 and will require around 300 tonnes of uranium a year in addition to some 400 tonnes a year consumed by two existing reactors in Angra dos Reis.

A further four to eight nuclear plants are planned through 2030 under a government energy plan, but implementation of the program would depend on the environmentalists' lobby.

INB produces 400 tonnes a year of uranium at its Caetite mines in the northeastern Bahia state. In 2011, the INB plans to add 400 tonnes from Caetite's new Engenho pit, which should effectively double total production compared with now.

Mines and Energy Minister Edison Lobao told Reuters last week the government was prepared to move ahead to allow the private sector to begin exploration, production and exportation of uranium with government oversight. (Editing by Christian Wiessner)