BHP Billiton is selling its Yeelirrie uranium project in Western Australia to Cameco, a uranium company based in Canada, for more than $A410 million.
Yeelirrie is one of Australia's largest undeveloped uranium deposits, 650 kilometres north-east of Perth.
BHP last week shelved plans to expand Olympic Dam, a uranium, copper and gold mine in South Australia.
Resource analyst Gavin Wendt said the Yeelirrie project is no longer strategically important for BHP.
''The project itself is too small for a company of BHP Billiton's size,'' he said.
In a statement on Monday, BHP said the sale is expected to be finalised by the end of the year, subject to approval from the state government and the Australian Foreign Investment Review Board.