Business Jul. 18, 2008 - 01:43AM JST ( 1 )

TOKYO —

British-Australian resource giant Rio Tinto said Thursday it will sell its uranium development project in Western Australia to a joint venture between a Canadian uranium producer and major Japanese trader Mitsubishi Corp.

The joint venture, of which 70% is held by the Canadian firm, Cameco Corp, and the rest by Mitsubishi, and Rio Tinto hope to complete the 495-million-dollar deal in August after gaining the Western Australia state government’s approval.

The Kintyre uranium exploration project, located about 1,250 kilometers northeast of the state capital Perth, is estimated to host uranium oxide deposits ranging from 62 million to 80 million pounds, according to Cameco.

The current Labor government in Western Australia opposes new uranium mine development. But Australian governments and political parties are becoming more supportive of uranium development, Cameco said.

JCN