Areva, a nuclear power plant builder based in France, has teamed up with Mitsubishi Corporation of Japan on a joint exploration program for a possible uranium development project in Australia.

The exploration will be carried out over an unspecified number of years, Areva said in a statement published in its Web site, across a large number of square kilometres of Australian land which had not been explored. The companies' subsidiaries, Afmeco Mining and Exploration Pty Ltd (AFMEX) and Mitsubishi Development Pty Ltd (MDP), will execute the exploration programme.

MDP will cover AFMEX's full exploration expenditure for several years up to a predetermined amount. Once the threshold has been reached, MDP has the option to purchase 49 per cent of exploration permits for Australian areas held by AFMEX. A joint venture, 51 per cent held by AFMEX and 49 per cent by MDP, could possibly result, the operations of which will be managed by AFMEX.

AFMEX holds seven exploration licences in the Curnamona basin area of South Australia, 300 kilometres north of Adelaide, according to World Nuclear News. Work progress on the area has so far consisted of aerial geophysical campaigns, including 10,000 metres of rotary drilling that is presently ongoing in the western part of the basin.

"By joining forces through this partnership, AREVA and Mitsubishi Corporation are gaining the means to develop Australia's very substantial uranium potential," said Olivier Wantz, AREVA senior executive vice president in charge of mining activities.

Australia, with uranium reserves among the largest in the world, in 2011 produced 6,200 tonnes or 16.1 million pounds of uranium. It is the world's number three uranium producer behind Kazakhstan and Canada. AREVA has been exploring the country's uranium reserves since the 1970s.

"We believe that exploitable low production cost deposits will be discovered there over the long term, hence our mutual commitment to financing such a large-scale exploration effort," Mr Wantz said.

AREVA's Koongarra subsidiary owns the uranium deposit of the same name, which it discovered in 1971. Found 250 kilometres east of Darwin in Northern Territory, a moratorium is currently imposed on the project.

AREVA also controls a share in the Valhalla uranium project in Queensland through a 10.5 per cent stake acquisition in 2007 in Summit Resources.