Cameco Signs Uranium Supply Agreements with China

Construction at China Guandong's 1,000-MW LNPS Phase II nuclear plant began in December 2005. Canadian
uranium producer Cameco recently signed long-term supply agreements with China Guangdong Nuclear Power
and China Nuclear Energy Industry Corp., two large state-owned utilities.
Cameco, which accounts for about 16% of world uranium production from mines in Canada and the United States, has signed long-term supply agreements with state- owned Chinese energy utilities, including China Nuclear Energy Industry Corp. (CNEIC), which is a subsidiary of China National Nuclear Corp. (CNNC), and China Guangdong Nuclear Power Holding Co.

The agreement with CNCC calls for Cameco to supply approximately 23 mil- lion lb of uranium concentrate under a long-term agreement through 2020. CNNC, which currently is China's largest nuclear generating company, operates seven reactors with 5,100 megawatts (MW) capacity and has 10 reactors under construction totaling 9,100 MW capacity.

Cameco's agreement with CGNPC is a non-binding framework agreement com- mitting the companies to negotiate long- term uranium purchase agreements and potential joint development of uranium resources. Discussions between the two companies are ongoing.

CGNPC needs uranium to fuel four existing reactors and others currently under construction. CGNPC has about 20,000 MW of nuclear capacity under construction and expects to have more than 50,000 MW on line by 2020.

As featured in Womp 2010 Vol 06 -