Watch above: More than seven million pounds of uranium will be supplied by Cameco to India under the terms of a new agreement inked in Ottawa. Aaron Streck examines the economic potential of the deal.
OTTAWA – Indian Prime Minister Narendra Modi has signed a deal to buy more than 3,000 tonnes of Saskatchewan uranium over the next five years to fuel his country’s power reactors. The five-year contract with Saskatoon-based Cameco (TSX:CCO) comes as Modi opens the first full day of his visit to Canada.
Saskatchewan Premier Brad Wall was in Ottawa for the signing of the contract.
“India has a dynamic and growing nuclear energy program, and the opportunity to supply this major customer is a huge deal for our industry, the workers it employs and the Saskatchewan communities it supports,” stated Wall.
“It just opens some new markets for us, it makes us that much more diverse, I was saying to the premier (Brad Wall) this morning how fascinating it is for a company from Saskatchewan to have sales into just about every country that does nuclear in the world,” said Cameco President and CEO Tim Gitzel.
India is expected to increase its nuclear power generating capacity over the next two years. The country currently has 21 nuclear reactors with another six under construction and expected to be online in 2017.
“The country has about 21 reactors, they have six under construction but they’re going to really increase that and with this agreement Cameco has access to that market so we can sell our Saskatchewan uranium right to India,” said Gitzel.
The president of the Saskatchewan Mining Association, Neil McMillan, said the deal will have a long-term impact on uranium mining in the province.
“This adds significant depth to our ability to market uranium and frankly I think will put significant pressure long term on prices,” said McMillan.
Wall first promoted the province’s uranium resources to Modi during a trade mission in November 2011. Modi was then the chief minister of the Indian state of Gujarat.
Watch below: Saskatchewan Premier Brad wall tells Vassy Kapelos there were times he thought the uranium deal with India wouldn’t come together.
Prime Minister Stephen Harper said it shows the commitment of the two countries to expand trade and business.
“Canada and India have a longstanding and mutual interest in expanding our trade relationship, particularly in the area of energy cooperation. This contract is a clear signal that our countries are open for expanding business partnerships together.”
READ MORE: Canada, India finalize nuclear cooperation agreement
The coming into force of the Canada-India Nuclear Co-operation Agreement in September 2013 allowed the deal to move forward. Under the agreement, Canadian companies are allowed to export nuclear products to India for peaceful uses.
Watch below: Prime Minister Stephen Harper congratulates Saskatchewan Premier Brad Wall and Cameco on a deal to provide Saskatchewan uranium to India for its atomic energy program.
With files from Aaron Streck, The Canadian Press
Comments