A consortium of Korean companies led by Korea Electric Power Corp. (KEP), or Kepco, is preparing to bid for a stake in one of the world's largest undeveloped uranium deposits, according to two people familiar with the matter.

State-run utility Kepco, Korea Hydro and Nuclear Power Co., and Korea Resources Corp. are looking to take a stake of around 15% in Extract Resources Ltd.'s (EXT.AU) Rossing South uranium mine development in Namibia, one of the persons said.

The consortium is working to submit the bid by a deadline of March 18, and the outcome is likely to be known a few months later, said the person, who didn't want to be named.

He didn't disclose the likely value of the Korean consortium's offer.

Another person confirmed Kepco and Korea Resources Corp. are in talks over a possible joint bid, but membership of the consortium hasn't been finalized.

The person didn't mention a possible involvement by Korea Hydro & Nuclear Power Co.

Extract, based in Western Australia, appointed the Australian unit of Rothschild in May last year to undertake a strategic review of its options for the development of the Rossing South deposit.

In November, Extract said it had "received extensive interest from a number of parties seeking to participate in the project's development" but hadn't ruled out developing the project by itself.

It wanted potential bidders to state how they could help bring a mine into production quickly and efficiently.

Extract says Rossing South--located to the south of Rio Tinto Ltd.'s (RTP) producing Rossing mine--has the potential to produce 15 million pounds of uranium a year. That would make it the world's second-largest uranium mine.

Rio Tinto owns nearly 15% of Extract and analysts think it's also likely to be in talks over potentially partnering in the development of Rossing South, especially if there is scope for sharing infrastructure at the Rossing mine.

David Wood, director of Rothschild Australia Ltd., didn't disclose any identities of potential bidders when contacted by Dow Jones Newswires Wednesday, but said large groups were among those that had approached Extract in past months about a partnership.

He confirmed parties were working toward a milestone in mid-March, adding Extract's management was open-minded about whether a miner or a uranium consumer would make the best partner if it opted to sell down part of its interest.

Concerns about climate change have thrust nuclear power, which relies on uranium as a fuel, back into the spotlight as a potential source of emissions-free energy.

Asian countries like China plan to accelerate programs to build reactors and European nations like Sweden are ending moratoriums on new nuclear plants.

In contrast to some renewable energy sources, nuclear technology is already commercial.

Supporters say plants don't require huge amounts of land compared to wind farms or biofuels plantations, and that safety continues to improve.

South Korea and Japan--Asia's current nuclear heavyweights--are planning additional plants, and many countries, including Vietnam, Thailand, and Indonesia, want to join the nuclear club.

China and South Korea have also said they plan to establish strategic stockpiles of uranium.

The growing demand for feedstock has combined with diminishing secondary supplies of uranium from sources like decommissioned nuclear weapons to put pressure on existing and new mines to bridge the gap.

South Korea's government has set a series of targets to secure the uranium needed for nuclear power plants.

It wants the country's uranium self-sufficiency ratio to rise to 25% by 2016 and to 50% by 2030 from 6.7% in 2010 through the acquisition of overseas mines.

In December, Kepco signed a deal with France's state-controlled nuclear group Areva SA (CEI.FR) to partner in the operating company of the Imoureran uranium mine in Niger.

That agreement gave Kepco the right to offtake 10% of the production of the mine for the duration of its operations, with the uranium used exclusively in South Korean nuclear power plants.

South Korea is also exporting nuclear power technology. A Kepco-led consortium received a $20.4 billion contract in December to build four nuclear power plants in the United Arab Emirates.

The Ministry of Knowledge Economy said in mid-January it is targeting overseas contracts for 10 nuclear power plants by 2012 and 80 plants by 2030.

This would make it the world's third-largest exporter of nuclear power plants and account for 20% of new nuclear power construction projects globally by 2030, the ministry said.

-By David Winning and Shin Jung-Won, Dow Jones Newswires; 822-2198-2240; david.winning@dowjones.com; jung-won.shin@dowjones.com
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