The UK Government is to proceed with its sell-off of a one-third stake in uranium enrichment company Urenco.

Officials reportedly hope to raise up to £3 billion from the sale, part of a wider strategy to dispose of public assets such as Royal Mail and the student loan book.

Michael Fallon, the business and energy minister, said the transaction would have to meet Britain's security interests as well as represent value for money. Mr Fallon said it was the right time for the Government to sell off its stake and that the decision made "good commercial sense".

Urenco enriches uranium using gas centrifuges to provide fuel for nuclear power, with 50 customers across 18 countries representing a 31% share of the global market.

Any sale must be agreed with the Dutch and German governments. German utility companies RWE and E.ON jointly own one-third of the company, which is also being sold. The Netherlands, which owns the remaining stake, is also said to be considering a sale.

Officials said the proceeds would be used to "meet the Government's priorities of achieving strong and sustainable growth across the country".

Safeguards are to be put in place to ensure the new owners do not have access to sensitive information about nuclear technology.

Potential buyers reportedly include Canadian energy firm Cameco, French nuclear group Areva, and Japan's Toshiba.