China Guangdong Nuclear Power Co. have struck an agreement with Namibia's Epangelo Mining Co. to try to secure a 10 per cent stake in Husab, the world's fourth-biggest uranium deposit.

However, the agreement is not conclusive to China becoming a shareholder in Epangelo Mining Co.

"Yes, there is a working agreement between the two companies, but Epangelo is a 100 per cent state-owned company. Shareholding is not an option," Isak Katali, Namibia's mines and energy minister, said in the namibian.com.na.

Epangelo Mining had earlier received from the government exclusive exploration and mining licences of all strategic minerals.

Australian-based Extract Resources owns Husab. It had already applied for a mining licence to develop the mine at a cost estimated to be about US$1.7 billion. UK-based Kalahari Minerals PLC, which owns 43 per cent of Extract Resources, is also in takeover talks with CGNPC.