International – TSX- and NYSX-listed Cameco Corporation, one of the world’s largest uranium producers, has signed a supply agreement with the Department of Atomic Energy of India to provide 7.1 million lbs of uranium concentrate under a long-term contract through 2020.
The contract is Canada-based Cameco's first with India, which is the world's second fastest growing market for nuclear fuel.
India operates 21 nuclear reactors providing 6 000 MW of nuclear capacity meeting about 3% of the country's electricity needs.
Another six reactors totalling 4 300 MW are under construction and scheduled to come online by 2017. By 2032, India expects to have 45 000 MW of nuclear capacity.
“This contract opens the door to a dynamic and expanding uranium market,” says Cameco president and CEO Tim Gitzel, adding that much of the long-term growth we see coming in our [uranium] 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 authorised by the Canada-India Nuclear Co-operation Agreement which came into force in September 2013.
"We thank Prime Minister Stephen Harper and Saskatchewan Premier Brad Wall whose strong support laid the groundwork for this agreement," says Gitzel. "We expect it will lead to growing trade in nuclear products and services between our nations for the generation of clean nuclear electricity."
The uranium produced from Cameco’s high-grade reserves and low-cost operations is used to generate clean electricity in nuclear power plants around the world. Besides its operation in Canada, Cameco explores for uranium in the Americas, Australia and Asia.