Cameco and India sign new uranium supply agreement

The agreement will see Cameco supply nearly 22 million pounds of uranium ore concentrate (U3O8) to the Department of Atomic Energy (DAE) between 2027 and 2035 on market-related price terms, with a total contract value estimated at about CAD2.6 billion (USD1.9 billion).

The agreement was signed during a visit by Canadian Prime Minister Mark Carney to Mumbai and New Delhi, during which he met with Indian Prime Minister Narendra Modi.

Cameco previously supplied uranium to India under a five-year contract that began in 2015.

"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 Cameco CEO Tim Gitzel. "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 recognised as a nuclear fuel supplier of choice, and we are pleased to be a trusted provider for India once again."

India currently has 24 operating reactors along with ambitious plans to deploy dozens more to reach 100 GW by 2047.

Last month, Kazakhstan's national atomic company Kazatomprom said it was seeking shareholder approval, via an Extraordinary General Meeting, for a long-term contract for the sale and purchase of uranium concentrates with India's Department of Atomic Energy. The Kazakh company said it has reached an agreement with the department's Directorate of Purchase & Stores (DPS) on the sale of U3O8 for physical delivery to India. As the transaction value comprises 50% or more of the total book value of Kazatomprom's assets, Kazakh legislation requires it to be submitted for consideration by shareholders. DPS is a centralised entity responsible for procurement, storage and inventory management for research centres and industrial enterprises in the Indian nuclear industry. The details of the proposed transaction, including pricing, volumes and delivery schedules, are confidential.