Cameco, which accounts for about 16% of world uranium production from mines in Canada and the United States, has signed long-term supply agreements with stateowned Chinese energy utilities, including China Nuclear Energy Industry Corp. (CNEIC), which is a subsidiary of China National Nuclear Corp. (CNNC), and China Guangdong Nuclear Power Holding Co.
The agreement with CNCC calls for Cameco to supply approximately 23 million lb of uranium concentrate under a long-term agreement through 2020. CNNC, which currently is China’s largest nuclear generating company, operates seven reactors with 5,100 megawatts (MW) capacity and has 10 reactors under construction totaling 9,100 MW capacity.
Cameco’s agreement with CGNPC is a non-binding framework agreement committing the companies to negotiate longterm uranium purchase agreements and potential joint development of uranium resources. Discussions between the two companies are ongoing.
CGNPC needs uranium to fuel four existing reactors and others currently under construction. CGNPC has about 20,000 MW of nuclear capacity under construction and expects to have more than 50,000 MW on line by 2020.