UPDATE 1-S.Korea to put $17 mln into Canada uranium project

(Adds location, uranium prices)

SEOUL, Oct 11 (Reuters) - A South Korean consortium led by Hanwha Corp. (000880.KS) plans to invest 16 billion won ($17.46 million) in a Canadian uranium project, South Korea's energy ministry said on Thursday.

The consortium and CanAlaska Uranium Ltd. (CVV.V), a Canadian uranium developing firm, agreed to co-explore for uranium reserves in the Cree-East project, the ministry said in a statement.

The consortium also includes Korea Electric Power Corp (015760.KS), Korea Resources Corp and SK Energy Co (096770.KS).

Under the deal, the South Korean consortium would take a 50 percent stake in the project from CanAlaska after the four-year contract, the ministry said in a statement.

The Cree-East project is located in the Southeastern Athabasca Basin, Saskatchewan. Athabasca Basin has the world's largest uranium deposit, according to the ministry.

South Korean companies have been actively seeking investment in uranium mining around the world as nearly 40 percent of energy generated domestically comes from nuclear power plants, the largest single source of power in the country.

Prices for uranium, used to fuel most of the world's nuclear reactors, have soared as growing demand has outpaced production.

Spot uranium prices hit a record high of $136 per pound in June, before retreating to $75 in October. Uranium traded at around $15 per pound five years ago.

Soaring oil prices and international attempts to reduce greenhouse gas emissions have put the spotlight back on nuclear energy. ($1=916.1 Won)