State-owned China Guangdong Nuclear Power Group has made an offer of $1.2bn to acquire Kalahari Minerals.

The Chinese Government is seeking uranium to boost its atomic generation. With the proposed acquisition, China Guangdong will have access to the Husab uranium project in Namibia through Extract Resources, which is 43% owned by Kalahari Minerals, according to Bloomberg.

China Guangdong has offered 17% more than the average price of Kalahari’s shares in the 20 trading days before the announcement of the bid.

Kalahari’s stake in Extract Resources is valued at about A$1bn ($1bn).

It has been speculated that Rio Tinto, which holds stakes in Extract Recourses (14%) and Kalahari Minerals (11.5%), and may block the offer or make a counter bid.