The Canadian Government has approved Paladin Energy's proposed application to own majority stake in a uranium mine at the Michelin Project in the Central Mineral Belt of Labrador.
Paladin acquired the Michelin Project in 2011.
Under the non-resident ownership policy (NROP), exemptions are permitted to the requirement for 51% resident ownership in cases where it can be demonstrated that no Canadian partners could be found.
The Canadian Government said in a statement: "Paladin Energy has satisfied the conditions for an exemption under the NROP for foreign-majority ownership of a uranium mine property in Canada.
"Specifically, the company has demonstrated that there are no Canadian partners that would be interested in leading the development of the proposed Michelin mining project in Labrador."
Prior to approving the proposal, relevant authorities in Canada conducted rigorous appraisal process of Paladin over a five-month period.
During the process, authorities questioned the Australian company on its achievements, technical abilities, environmental performance and commodity knowledge.
Approval was given by the Canadian Minister of Natural Resources Greg Rickford, and finally by Prime Minister Stephen Harper.
Paladin Energy managing director/CEO John Borshoff said: "Paladin owns uranium projects in Canada and Australia in addition to having developed mining operations in two countries in Africa.
"With the inevitable market improvement ahead, this exemption allows us to develop a uranium mine at our Michelin Project in Labrador when the uranium price is at an appropriate level and after obtaining all necessary approvals and consents."
Located about 140km north-east from the town of Happy Valley-Goose Bay, the Michelin project area is estimated to contain a measured and indicated mineral resource of 47.7Mt for 100.8Mlb U3O8 and an inferred mineral resource of 21.9Mt for 39.8Mlb U3O8.
According to Paladin, the proposed project could create up to 750 jobs during the construction phase, with 350 jobs created once fully operational.