Aug. 6 (Bloomberg) -- WildHorse Energy Ltd., the Australian uranium explorer backed by Macquarie Group Ltd., agreed to study the potential for restarting uranium mining in southern Hungary as demand for the metal from power producers increases.
Under an accord with state-owned Mecsekerc Zrt the partners will evaluate the Mecsek Hills project area by the end of September, Perth-based WildHorse said today in a statement to the Australian stock exchange. They will then do more detailed feasibility work before deciding whether to develop a mine.
A resurgence in interest in nuclear power because of rising fossil fuel costs and increased pressure to cut greenhouse gas emissions is boosting demand for uranium. About 46 million pounds of the radioactive metal was produced from the Mecsek Hills area before the closure of the mine in 1997.
The agreement ''is a significant step forwar''This next phase of work will help determine the potential for future mining.''
WildHorse gained 4 Australian cents, or 13 percent, to 34 cents in Sydney trading, the biggest advance in six weeks.
The number of nuclear power reactors may jump 30 percent by 2020, buoyed in particular by investments planned in India and China, the World Nuclear Association estimates.