UPDATE 1-U.S., Brazil could collaborate on nuclear reactors -minister

The United States and Brazil could work together to build small nuclear reactors, as South America's largest economy prepares to open uranium mining and related areas to foreign investment, Brazil's mines and energy minister told Reuters on Friday. Brazil is preparing legislation that would clear the way for both private and foreign investment in prospecting and mining for uranium in the country, Minister Bento Albuquerque said in an interview. There is already a draft of the legislation, but a final version must be negotiated with Congress, he said.

"We have to resolve internally the issue of uranium exploration that today is a monopoly of the state and is in the hands of Nuclear Industries of Brazil," Albuquerque said, referring to the state-owned company responsible for the country's uranium mines. "What we have to do is to make our legislation more flexible so that there can be private uranium exploration," he said. (Reporting by Lisandra Paraguassu; writing by Jake Spring; editing by David Gregorio and Phil Berlowitz )