Cameco Inc has signed a supply agreement with the Department of Atomic Energy of India to provide 7.1 million pounds of uranium concentrate from Canada under a long-term contract through 2020. The contract is Cameco Inc’s first with India which is the world’s second fastest growing market for nuclear fuel.
India operates 21 nuclear reactors providing 6000 megawatts of nuclear capacity meeting about 3% of the country’s electricity needs. Another six reactors totalling 4300 megawatts are under construction and scheduled to come online by 2017. By 2032, India expects to have 45,000 megawatts of nuclear capacity.
“This contract opens the door to a dynamic and expanding uranium market,” said Cameco’s president and CEO Tim Gitzel. “Much of the long-term growth we see coming in our industry will happen in India and this emerging market is key to our strategy.”
Export of Canadian uranium to India for the generation of electricity is authorized by the Canada-India Nuclear Co-operation Agreement which came into force in September 2013.
“We thank Canada’s Prime Minister Stephen Harper and Saskatchewan Premier Brad Wall whose strong support laid the groundwork for this agreement,” said Tim Gitzel. “We expect it will lead to growing trade in nuclear products and services between our nations for the generation of clean nuclear electricity.”
Cameco is one of the world’s largest uranium producers, a significant supplier of conversion services and one of two Candu fuel manufacturers in Canada.
Its competitive position is based on its controlling ownership of the world’s largest high-grade reserves and low-cost operations. Cameco’s uranium products are used to generate clean electricity in nuclear power plants around the world. The company also explores for uranium in the Americas, Australia and Asia.