TORONTO(Reuters) - Cameco Corp CCO.TO remains confident that the long-termoutlook for uranium is solid despite global anxiety over radiation froman earthquake-crippled nuclear plant in Japan, Chief Executive JerryGrandey said on Monday.
Speaking to Reuters in an exclusiveinterview at the Mining and Steel Summit, Grandey said that while theso-called nuclear renaissance will be slowed by the crisis in Japan,more uranium will be needed in the next few years to fuel reactorsalready online and under construction.
Cameco, the world's No. 2uranium producer, plans to double production to 40 million pounds a yearby 2018. With contracts in place through 2017, the crisis will not havea material impact on the company's long-term outlook, Grandey said.
"Wesee no reason to slow down the doubling of production," he said. "Evenif there is a pause or slowdown (in the nuclear plant buildout) asexpected."
He said that while China has frozen approvals of allnew nuclear power projects, he believes the country will still ramp upits nuclear output to at least 70 gigawatts from its current capacity of11 gigawatts.
"I still don't see, even with a slight pause, whythat wouldn't be achieved," Grandey said. "If they achieve by 2020 only40 gigawatts, which is what's under construction and what's operating,they still would require 20 million pounds a year."
Current globaluranium demand is about 180 million pounds a year, with mine outputaccounting for about 140 million pounds of that. The remainder comesfrom stockpiles and downgraded weapons-grade uranium.
"My senseis, given all those pieces, there isn't going to be much of a change inthe supply and demand imbalance that we have, and in the need for newprojects to come online in the next decade."
Grandey said heexpects Cameco to meet its revenue forecasts for 2011. The company saidlast month that it expects revenues to rise by 15 to 20 percent thisyear.
Shares of Cameco closed up 7.35 percent at C$31.09 on Mondayon the Toronto Stock Exchange, after tumbling over 21 percent lastweek.
($1=
98 Canadian)
(Additional reporting by Euan Rocha, Matt Daily, Steve James, Mike Erman, Scott Disavino; editing by Peter Galloway)