CHINA is set to receive its first delivery of Australian uranium following last year's signing of a bilateral safeguards agreement.

Rio Tinto-controlled Ranger uranium miner Energy Resources of Australia revealed it had secured a supply deal with an unnamed electricity utility in China, with first deliveries due this half-year.

The deal is expected to be the first of many as China has launched itself into an ambitious nuclear power growth strategy. BHP Billiton has its sights set on the Chinese market to soak up the fourfold increase in uranium production to come with its expansion of the Olympic Dam mine in South Australia.

Rio, the subject of a hostile 3.4-for-1 scrip offer from BHP, has its own uranium expansion ambitions. It told analysts at a Sydney briefing that it wanted to double output within five years.

Rio's Rossing mine in Namibia produced 6.7 million pounds of uranium last year and the Ranger mine produced 11.71 million pounds. On a combined basis, the mines account for 17% of global production.

Olympic Dam accounts for 8% of global production, but could grow to more than 30% when the operation is expanded.

Rio told the briefing it was in discussions that could lead to it becoming involved in the Kazakhstan uranium industry. It is also exploring uranium opportunities in the Middle East.

ERA's June-half profit from the Ranger mine was $38.9 million. That was up strongly from $5.7 million and reflected an increase in the group's average realised uranium price to $US35.69 a pound.

That was more than double the $US16.90 a pound in the previous corresponding period but remained well short of the average long-term market price for the June half of $US90.83 a pound.

That is because ERA still has "legacy" supply contracts that were written when uranium prices were much lower.

ERA has declared an interim dividend of 8¢ a share (nothing previously). It is fully franked. The record date for the dividend is August 26 and it will be paid on September 9.

ERA has not given up hope that it will one day get approval from traditional landowners to develop the big Jabiluka deposit, 20 kilometres from Ranger. The traditional landowners are said to have been unmoved by the recent deal that resulted in the Martu people being cut in on the sale of Rio's Kintyre deposit in Western Australia to Canadian uranium giant Cameco.