Namibia on Thursday granted the local unit of Australia's Extract Resources a mining licence to exploit the largest uranium deposit in the country, in what will be a $1.5-billion investment.

"The Ministry of Mines and Energy issued the mining licence to Swakop Uranium," company spokeswoman Nomvula Kambinda told AFP.

Swakop is wholly owned by Perth-based Extract Resources, which says its primary focus is developing Namibia's Husab uranium deposits, the fourth-largest in the world.

"The 12 billion Namibia dollar ($1.5 billion, one billion euro) project will create more than 3,000 temporary jobs during construction and about 1,200 permanent operational jobs," Norman Green, Swakop's chief executive, told an international investment forum Wednesday in Windhoek.

The project in the mineral-rich Erongo Region, 300 kilometres (180 miles) west of Windhoek, will contribute five percent to Namibia's gross domestic product and 20 percent to exports, with a mining life of 20 years, he said.

China's state-owned China Guangdong Nuclear Power Group Uranium Resources Company (CGNPG-URC) has also shown interest in Husab.

This week the Chinese firm held talks on buying a 10 percent stake in Namibia's state mining company Epangelo, with both of them then buying into Husab.

"We are aware these discussions are taking place," Extract said in a statement.

"However, any agreement between CGNPG-URC and Namibia's Epangelo would need to be conditional on CGNPG-URC having acquired a controlling interest in Extract's 100-percent owned Husab project."

Epangelo is in talks to buy a 10 percent stake of the Husab project, regardless of whether the Chinese deal goes through.

Separately CGNPG-URC is discussing a takeover of Britain-based Kalahari Minerals, which owns 43 percent of Extract. The Chinese company has until December 8 to commit to an offer.

Under Australia's stock exchange rules, where Extract is listed, CGNPC-URC would then have to follow the Kalahari offer up with a bid for Extract, unless Australia's securities regulator grants an exemption.

In May CGNPC-URC made an offer for Kalahari Minerals but then withdrew it.