Aletho News

Canada to Supply Uranium to India and China

India has not signed the Nuclear Non-Proliferation Treaty

By Dave Brown –  Uranium Investing News

On June 27, The Prime Ministers of Canada and India signed a civil nuclear cooperation agreement.  The deal provides for cooperation in civil nuclear energy including import of uranium and equipment from Canada, underscoring cooperation in the fields of nuclear waste management and radiation safety.

India expects to have 12 new reactors running by 2020, consuming an extra 1,500 tonnes of uranium per year. Other projects are expected, making India’s civilian nuclear sector worth $25-billion to $50-billion over the next 20 years.  Dr. Chaitanyamoy Ganguly, the President of the small Indian division of Cameco (TSX: CCO), the world’s largest uranium miner, said Canada could soon be exporting 2,000 tonnes of uranium to India annually. Canada has some natural competitive advantages over other countries in the Indian market because many of India’s reactors are already based on Canadian CANDU technology and because Australia has refused to sell uranium until India signs the Nuclear Non-Proliferation Treaty.  India has also signed civil nuclear cooperation agreements with the USA, Russia, France, UK, Argentina, Kazakhstan, Mongolia and Namibia.

Cameco signed an agreement on June 24 with China Nuclear Energy Industry Corporation (CNEIC), a subsidiary of China National Nuclear Corporation (CNNC), to supply China’s largest nuclear generator with uranium concentrate under a long-term agreement through 2020.  The deal would see Cameco supplying approximately 23 million pounds over the next 10 years to CNNC, which currently operates seven reactors with a total capacity of 5,100 MW.  The state-owned CNNC, in operation for nearly 50 years, expects to be one of the world’s leading nuclear power companies by 2020 with 10 reactors under construction totaling capacity of 9,100 MW.

Cameco also has also agreed to pursue long-term non binding co-operation opportunities with China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) to supply uranium fuel for its growing fleet of nuclear power plants.  This agreement will see a strategic alliance between Cameco and China’s largest clean-energy enterprise with the largest number of nuclear power plants under construction in the world.   CGNPC needs uranium to fuel its four existing reactors and indicates that it has about 20,000 MW of nuclear capacity under construction with expectations of over 50,000 MW on line by 2020.

Jerry Grandey, Cameco’s CEO, seemed very pleased with these announcements, “Our plan to double uranium production by 2018 aligns well with China’s vigorous reactor construction program.”  Chinese estimates indicate the country is expecting to increase its nuclear capacity from the current 9 GW to at least 70 GW by 2020 with a further increase to at least 120-160 GW planned by 2030… Full article

Aletho News notes that Canadian based Cameco Resources, which is the largest U.S. uranium producer, operates an in situ leaching plant near Glenrock, Wyoming. – link

June 29, 2010 - Posted by aletho | Nuclear Power