Mitsui to partner in Russia uranium mine

TOKYO, Oct 6 (Reuters) Mitsui&Co. Ltd. said on Friday it will join Russian state nuclear firm Techsnabexport (TENEX) to develop one of the world's largest uranium mines for an estimated 5 million, with the Japanese trading firm taking a 25 percent stake in the mine.

Shares in Mitsui, Japan's second-biggest trading company, were up 3.29 percent at 1,477 yen following a Nihon Keizai Shimbun report on the mine deal.

The benchmark Nikkei average was down 0.04 percent.

A spokesman for Mitsui said the company had agreed with TENEX to do a feasibility study on developing the mine. The spokesman declined to be identified.

Mitsui will shoulder the cost for the feasibility study of million.

Mitsui said it and Tenex would spend an estimated 5 million overall to develop the mine and aimed to begin production in 2009.

The mine's reserves are estimated at more than 250,000 tonnes, making it one of the largest in the world, the spokesman said. The mine is expected to churn out 1,000 tonnes at the peak time, he said.

Reuters DKS VP0720