Hungary has formally expressed its approval for the development of the Mecsek Hills Uranium mine project through a joint venture, Australian miner Wildhorse Energy (WHE) announced on Wednesday.

The three-way joint venture will be composed of WHE, Hungarian state owned Mecsek-Öko and Mecsekérc, and Hungarian Electricity Ltd, owner of the Paks Nuclear Power Plant.

The Paks Nuclear Power Plant feeds 40 per cent of the entire country's power needs and is currently developing two new nuclear reactors.

The Mecsek Hills Uranium mine project, according to WHE, hosts an inferred resource of 48.3 million tonnes grading 0.072 per cent for 77 million pounds of uranium, thus making it one of the largest uranium projects in Europe.

"With the Hungarian Cabinet approval, we now have formal government endorsement of a potential JV to develop the Mecsek Hills Uranium Project, a highly important... strategic asset, which is one of Europe's largest uranium projects," Matt Swinney, managing director of WHE, said in a statement.

Hungary has long wanted to diversify its fuel generation capabilities and reduce its reliance on imported energy sources. The country is currently highly dependent on gas imports from Russia.

"We are now positioned to establish the JV company, which we hope will be achieved in the near term, so that we can identify the optimal path for development to maximize the benefit for all stakeholders," Mr Swinney said.