By Brent Bosker

Cameco inks uranium supply deal with Chinese firm

Nov 25, 2010 | 10:50 AM

China has reached out to Saskatoon-based Cameco again, to help them meet their future energy needs.

Cameco has signed an agreement with China Guangdong Nuclear Power Holding which will supply them with 29 million pounds of uranium, over the next 15 years.

“China is very rapidly growing its nuclear energy capability,” said Jerry Grandey, CEO of Cameco.

China plans to increase its nuclear capacity from the current 11 gigawatts to at least 80 GW by 2020.

“There is no question now that they’re going to achieve the objectives and Cameco wanted to be well positioned with the two nuclear energy companies in China as a longer term supplier,” Grandey said.

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In June, Cameco signed a similar supply contract with China Nuclear Energy Industry Corporation worth 23 million pounds over the next 10 years.

Cameco intends to double its uranium production by 2018. Grandey said these supply agreements help the company achieve that objective.

“There’s no company in the uranium world that has a better resource endowment than we do — 500 million pounds of proven and probable reserves, 500 million pounds of resources — and a lot of exploration properties around the globe.”

China’s nuclear appetite will further increase, with plans to expand capacity to 120-160 GW by 2030.

“Ultimately China is going to be as a big of a market for uranium as the US is,” said Grandey.

bbosker@panow.com