Cameco announced in late November 2010 it signed an agreement with China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) to supply 29 million lb of uranium concentrate to CGNPC under a long-term agreement through 2025. CGNPC currently operates three nuclear power stations in China, has 14 nuclear additional units under construction (more than 17,000 MW of nuclear capacity), and is commencing preliminary work on another nine units. The company expects to have more than 50,000 MW on line by 2020.
Reports from China indicate the country plans to increase its nuclear capacity from 11 gigawatts (GW) now to at least 80 GW by 2020, the Cameco announcement said. A further increase to between 120 GW and 160 GW, or more, is planned by 2030.
“This long-term supply agreement with China Guangdong Nuclear Power is a significant step for our company in the world’s fastest growing uranium market, and is further evidence that our plan to double uranium production by 2018 aligns well with China’s remarkable nuclear reactor construction program,” Cameco CEO Jerry Grandey said.
Cameco’s uranium supply agreement with China Guangdong is its second in recent months with a Chinese electric power utility company. In June 2010, Cameco signed an agreement with China Nuclear Energy Industry Corp., a subsidiary of China National Nuclear Corp. (CNNC), for the supply of approximately 23 million lb of uranium concentrate through 2020. CNNC is currently China’s largest nuclear power generator. The company operates seven reactors with 5,100 MW of capacity and has 10 reactors under construction totaling 9,100 MW of capacity (E&MJ, July/August 2010, p. 19).