India’s nuclear deal to help Canadian company and create jobs

Saskatchewan-based company saw its shares jump after the deal

GN Bureau | April 16, 2015


#uranium   #enriched   #nuclear deal   #Canadian   #India  

A good deal makes economics and financial sense. The $280 million deal to supply uranium fuel to India formally ends nuclear-untouchable status of India and makes stocks of Canadian producer Cameco Corp very attractive.

The Saskatchewan-based company will supply 3,220 metric tonnes of uranium concentrate to India over the next five years, as per the agreement signed on Wednesday. The deal is Cameco's first with India and as result its shares rose 5.8 per cent in Toronto.

Canada banned exports of uranium and nuclear hardware to India in the 1970s after the government used Canadian technology to develop a nuclear bomb.

"Canada is providing uranium to India as a mark of its trust and confidence in India," prime minister Narendra Modi told a news conference during his official visit to the North American country.

Nuclear trade between Canada and India has the potential to go far beyond uranium, extending to exports of hardware.

Cameco CEO Tim Gitzel said the Indian uranium deal represents a small portion of annual sales. For instance, Cameco expects to sell nearly 15,000 metric tonnes in 2015.

The agreement paves the way for the Saskatchewan company, the world’s second-largest uranium producer, to sell more in the years ahead as India vastly expands nuclear power generation. India’s nuclear energy building program is second only to China’s in scale.

He said much of the long-term growth Cameco sees in the uranium industry will come from India. “We want to be the preferred seller to India,” he said. “Today is just the start of the relationship.”

Cameco is one of the world's largest uranium producers accounting for about 16% of the global production from its mines in Canada, the US and Kazakhstan.

Meanwhile, Saskatchewan premier Brad Wall, who played a major role in the deal, characterized the sale as helping a country with similar values and a boon for his province.

“Our uranium producers are excited and ready to supply product to India, the world’s largest democracy,” Mr. Wall said.

He said 45 per cent of Cameco’s work force in Saskatchewan is aboriginal. “This is the largest industrial employer of First Nations and Métis people in our province.”

Under the five-year contract, Saskatoon-based Cameco will supply 3,000 tonnes of northern Saskatchewan uranium to India’s Department of Atomic Energy, according to a Cameco statement. At current market prices of approximately $49 CAD per pound, that volume is worth around $345 million.

Gitzel said the contract's future potential is also very exciting. India has 21 nuclear reactors operating, six under construction and possibly a few dozen more coming in the coming decades. With 400 million Indians still without power, there’s potential for Cameco to supply much more product, he said.

The regulatory path was cleared two years ago for Canada to sell uranium to India. The rules allow sales for peaceful power-generating purposes only, Gitzel said. Gitzel said Cameco officials worked hard, but also credited Harper’s and Wall’s separate visits to India to promote Saskatchewan uranium.

Comments

 

Other News

The other Modi who won in Gujarat

Another Modi emerged triumphant in Gujarat on Monday. No, we are not talking about prime minister Narendra Modi who is credited with scripting the Gujarat and Himachal Pradesh victories, but it is about the other Modi who contested from Surat West seat.   BJP candidate Purnesh Mo

Majoritarianism rules!

Just the facts first. In the Gujarat assembly elections, the BJP did not field a single Muslim candidate. No one expected it to; and its leaders make no bones about ignoring the nine percent Muslims of the state. The Congress, playing realpolitik in a state where the sentiment is well-known, chose tokenism

Modi credits good governance for Gujarat, HP victories

Prime minister Narendra Modi has thanked voters of Gujarat and Himachal Pradesh and credit good governance for his party’s victories in the state assemblies. “I bow to the people of Gujarat and Himachal Pradesh for their affection and trust in BJP. I assure them that we will leav

Himachal poll and its film connect

Former minister Anil Sharma, whose son Ayush Sharma is married to Arpita, sister of film star Salman Khan, has won from Himachal Pradesh’s Mandi assembly constituency. Anil Sharma, son of former union telecom minister Sukh Ram, had left the Congress and joined the BJP ahead of the asse

AAP clean bowled in Gujarat

The Aam Aadmi Party (AAP) was out on duck in Gujarat where none of its 20 candidates failed to win in the assembly elections. The poor showing of the party at the hustings comes on the heels of the reversals it faced in Punjab and Goa. The situation for the AAP was so bad in G

Twitter erupts in laughter with #GujaratVerdict

Going by the leads, the BJP is set to establish its stronghold in Gujarat and Himachal Pradesh. Confident of his party’s victory, prime minister Narendra Modi even flashed a victory sign while walking into the parliament today morning.  After a neck and neck contest in the early morning,



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter