RTT News reported that BHP Billiton Limited has agreed to sell its Yeelirrie uranium project in Western Australia to Canada based uranium producer Cameco Corporation for USD 430 million.

The transaction is expected to close by the end of 2012 subject to approval from the government of Western Australia and the Australian Foreign Investment Review Board.

Yeelirrie, one of Australia's largest undeveloped uranium deposits, is located 630 kilometers north east of Perth in the Northern Goldfields region of Western Australia. The project is also located about 750 kilometers south of Cameco's Kintyre exploration project. Uranium was discovered at the Yeelirrie site in 1972 by Western Mining Corporation which was acquired by BHP Billiton in 2005.

Mr Dean Dalla Valle president of BHP Billiton Uranium said that "Cameco is one of the world's largest publicly listed uranium producers and is highly respected in the industry. We believe they are well placed to carry this project forward in a responsible manner."

Cameco said that upon closing of the deal, it will be required to pay stamp tax duty of about USD 22 million to the government of Western Australia. In late November 2011, Cameco backed out of its hostile CAD 625 million takeover bid for smaller peer Hathor Exploration Limited paving the way for Rio Tinto plc to proceed with its planned takeover of Hathor for CAD 654 million.

BHP Billiton said that it has scrapped USD 30 billion expansion plan of Australia's largest uranium deposit Olympic Dam, citing current market conditions including subdued commodity prices and higher capital costs. As a result of the decision it will incur impairment and other charges of USD 346 million before tax in the 2012 financial year.

Source - Reuters

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