Positive news for uranium Cameco to supply India with 7.1 Mlb U through 2020
2015-04-15 11:05 ET - News Release
Mr. Tim Gitzel reports
CAMECO ANNOUNCES CONTRACT WITH INDIA TO PROVIDE URANIUM FOR ELECTRICITY GENERATION
Cameco Corp. has signed a supply agreement with the Department of Atomic Energy of India to provide 7.1 million pounds of uranium concentrate under a long-term contract through 2020.
The contract is 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 megawatts of nuclear capacity meeting about 3 per cent of the country's electricity needs. Another six reactors totalling 4,300 megawatts are under construction and scheduled to come on-line 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 Tim Gitzel, Cameco's president and chief executive officer. "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 Prime Minister Stephen Harper and Saskatchewan Premier Brad Wall, whose strong support laid the groundwork for this agreement," said Mr. Gitzel. "We expect it will lead to growing trade in nuclear products and services between our nations for the generation of clean nuclear electricity."