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Cameco poised to grow with demand

Feb 16, 2012 | 5:33 AM

Cameco, the world largest producer of uranium in the world, is ready to grow with exploding demand for the element and Saskatchewan will enjoy that growth said CEO Tim Gitzel.

Gitzel, born in Prince Albert and raised in Saskatchewan, was the keynote speaker at Wednesday’s Prince Albert and District Chamber of Commerce luncheon.

He talked about how the company was hoping to be able to double its uranium output to 40 million pounds up per year from 20 million, in a program called “Double U” over the next few years.

“The world demand for electricity is growing and we’re going to grow with it,” he said.

“And not surprisingly, most of the growth is coming from countries with rapidly expanding economies and rapidly expanding populations.”

Gitzel said China was leading the way when it came to growth with almost 30 reactors under construction and dozens more set to begin in the coming years.

Add that to the fact that the federal government recently allowed companies such as Cameco to sell their product to China and that’s a winning combination, Gitzel said.

“The agreement signed with the Chinese gives us a lot more financial certainty knowing we have the backstopping of the contracts with them to allow us to invest what we know will be several billion dollars in northern Saskatchewan,” he said.

Gitzel went on to say that a company is only as good as its people and with growing output would come more employment.

Coupled with the fact that Cameco is the largest industrial employer of aboriginals and more than 50 per cent come from people living in the province’s north, Gitzel said it could only mean good things.

“We can put all the capital we need and want into to the province, but we also need people,” he said. “This is becoming a very, very important topic as we move forward.”

“People are going to be essential for us if we’re going to deliver on our aggressive growth agenda.”

He added that the province was a great place to be headquartered and the business climate was ripe for the company, and its employees to continue to operate well into the future.

adesouza@panow.com