Cameco signs uranium supply deal with China

25 June 2010

Uranium giant Cameco has signed an agreement to supply China Nuclear Energy Industry Corporation (CNEIC) with 23 million pounds of uranium concentrate though 2020. The Canadian company is also negotiating a long-term uranium purchase agreement with China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC).

The deal with CNEIC, a subsidiary of China National Nuclear Corporation (CNNC), which operates seven reactors and has ten under construction, is Cameco’s first long-term supply agreement with a Chinese utility.

Commenting on the deal Cameco CEO Jerry Grandey said: "The agreement indicates clearly that we intend to be very active in the world's fastest growing uranium market."

"The rapid expansion of nuclear capacity in China demonstrates the excellent prospects for nuclear energy and the solid underpinning of our plan to double uranium production by 2018," Grandey added.

Cameco has also announced that it is pursuing long-term co-operation opportunities with CGNPC to supply uranium fuel for its growing fleet of nuclear power plants. CGNPC has some 20GW of nuclear capacity under construction and expects to have 50GW installed by 2020.

On 24 June, Cameco and CGNPC signed a non-binding framework agreement committing to negotiate long-term uranium purchase agreements and potential joint development of uranium resources.

"The announcement today moves Cameco one step closer to supplying uranium to one of the fastest growing nuclear companies in the world," said Grandey.

The agreement with CNEIC is subject to Chinese government approval. CNEIC conducts nuclear imports and exports and produces and markets uranium ores in China. The negotiations between Cameco and CGNPC are ongoing.

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