SEOUL, March 2 State-run Korea Electric Power
Corp (015760.KS) has cancelled two preliminary deals to develop
uranium mines in the United States and Slovakia due to weak
product prices, local media reported on Monday, citing officials
from the energy firm.
The power monopoly will instead seek to buy uranium mines
currently in development or in production stage in Australia,
South Africa and Kazakhstan, Yonhap News said.
In May, the firm signed cooperation deals with U.S.
Yellowcake Mining Corp and Canada-based uranium explorer
Tournigan Energy Ltd to develop mines in Colorado and Kurisokva,
Under the agreement with Yellowcake Mining, KEPCO plans to
secure a 50 percent stake in the Beck mine, which has proven
reserves of 5,000 tonnes of uranium and estimated reserves of
10,000 tonnes. [ID:nSEO1918]
Citing KEPCO officials, the report said the cancellation came
due to a sharp drop in uranium prices, which fell to $47 a pound
in January from a record high of $135 a pound in 2007.
Whether KEPCO had to pay a fine for scrapping the deals was
not immediately known and officials were unavailable for comment.
KEPCO will maintain explorations of a uranium block in
Canada, as it has already begun work in that area, the report
Shares in KEPCO lost 3.96 percent as of 0236 GMT, trading at
23,100 won, and underperforming the wider market's .KS11 3.35
(Reporting by Angela Moon; Editing by Jacqueline Wong)