SASKATOON – A major announcement to emerge from the province’s trade mission to India is that an agreement has been signed to sell Saskatchewan uranium.
In Delhi on Monday, an agreement was signed where Cameco agrees to supply uranium ore concentrate to the Government of India’s Department of Atomic Energy, for use in India’s nuclear reactors. According to a news release Cameco will supply almost 22 million pounds of uranium ore concentrate to India over a nine-year period on market prices, with the total contract estimated at approximately $2.6 billion.
Canadian Prime Minister Mark Carney and Saskatchewan Premier Scott Moe were at the signing with Indian Prime Minister Narendra Modi, as well as Cameco CEO Tim Gitzel.
In a statement the federal government said the agreement on uranium was seen as a “first step” in a new Strategic Energy Partnership with India announced Monday. That partnership will include uranium LNG, LPG, solar, and hydrogen.
The signing was part of Carney’s bilateral visit to India which has now wrapped up, and is also part of Moe’s trade mission to India which continues to March 6.
“We understand Saskatchewan’s potential to supply the world with the fuel it needs to power the economies of tomorrow and it’s great to see India value the energy security we can provide,” Premier Moe said in a statement.
“This agreement is thanks in no small part to Cameco for their dedication to our uranium industry, and the governments of Saskatchewan, Canada and India for their priority on a productive and mutually beneficial relationship. Today marks a great day for this longstanding partnership and holds a lot of promise for a bright future together.”
“Cameco is proud to be a strategic partner with India to help meet its civil nuclear fuel needs and support its trade relationship with Canada,” said Gitzel in a company news release.
“India is embarking on an ambitious nuclear expansion to power its development plans and meet the future energy security needs of its people. That isn’t possible without a stable supply of uranium fuel. Importantly, this demand underscores an emerging trend of sovereign buyers locking up large volumes from multiple suppliers, and in a window where demand continues to grow and available supplies continue to become more uncertain and constrained. As a proven and reliable producer, Cameco is globally recognized as a nuclear fuel supplier of choice, and we are pleased to be a trusted provider for India once again.”
The agreement replaces a five-year agreement from 2015.
Cameco says deliveries under the deal should start in 2027 and run through 2035, which the company says in alignment with Cameco’s long-term contracting strategy.
