China's move on Kalahari Minerals (KAH.L) could flush out other bidders for the uranium miner but even long-term suitor Rio Tinto (RIO.L) may baulk at getting into a bidding war with such a formidable foe.

Any buyer would secure access to one of the world's biggest uranium deposits at a time when major powers, led by China, are scrambling to secure alternative, and increasingly scarce, sources of energy as oil prices surge.

Uranium is in particularly short supply with governments having to rely on material from decommissioned nuclear warheads to meet demand.

Kalahari said on Monday that China Guangdong Nuclear Power Holding Corporation (CGNPC) had proposed a 756 million pound ($1.2 billion) offer, lured by London-listed Kalahari's 43 percent stake in Extract Resources.

Eoin Treacy's view China's appetite for world class resource deposits remains undiminished. Considering the country's aggressive nuclear reactor build schedule, it is unsurprising that uranium is on its shopping list.

Kalahari Minerals has been among some of the best performing uranium related shares over the last two years. (Also see Comment of the Day on December 31st). It rallied impressively in 2009 and had a shallower reaction than Extract Resources which is its largest holding. The share hit a new high in December, found support near the old high in late February and reasserted the uptrend today. A sustained move below 250p would now be required to question upside potential.

Kalahari owns 40% of Extract Resources which was an early leader among uranium miners and rallied impressively in 2009. It hit a medium-term peak near A$12 in September 2009 and found support at A$6 in October 2010. A clear downward dynamic would be required to question medium-term upside potential. (Also see Comment of the Day on October 20th. )

Kalahari owns approximately 45% of North River Resources which mines copper, gold and base metals. It appears to be forming a 1st step above the yearlong base and a sustained move below 3.5p would be required to question potential for some additional upside.