Paladin shareholder’s Russian connection

URANIUM miner Paladin Energy has disclosed that Canada’s Uranium One Inc, which is backed by the state-owned corporation controlling all of Russia’s nuclear activities, has acquired a strategic shareholding.

The mystery shareholding was revealed as a result of a recent analysis of Paladin’s share register.

It found that Cheetah Resources SARL, a company registered in Luxembourg, holds at least 9.8 million shares, or 1.3 per cent of Paladin shares.

Subiaco-based Paladin said Cheetah appeared to be a 100 per cent-owned subsidiary of Uranium One Inc, which is listed on the Toronto and Johannesburg stock exchanges and has a market capitalisation of about $A1.6 billion.

Uranium One’s principal producing assets are located in Kazakhstan and operated by Kazatamprom, the Kazakh state uranium company, via joint venture.

Uranium One’s largest shareholder is Effective Energy NV, a 100 per cent-owned subsidiary of ARMZ Uranium Holding Co.

ARMZ, in turn, is the authorised uranium supplier to the Russian nuclear industry, and is part of Rosatom, the state corporation controlling all of Russia’s nuclear activities.

Paladin said it was important to convey this information to the market “particularly in view of the concentrated nature of the global uranium industry and the role Paladin plays in this exclusive sector”.

Led by chief executive John Borshoff, Paladin is the world’s largest independent, pure-play publicly traded uranium producer, with a market capitalisation of $A2.7 billion.

This status has made it the subject of perennial takeover speculation, with most focus on industry majors like Areva and Cameco.

Paladin currently operates the Langer Heinrich mine in Namibia and the Kayelekera mine in Malawi and has ambitious growth plans, which will lift its production base to more than 14 million pounds of U3O8 by 2014.

Paladin said it has not been contacted by either Cheetah Resources or Uranium One in regard to the shareholding and is not aware of their intentions.