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Researched by Industrial Info Resources (Sugar Land, Texas)--The largest publicly traded uranium company in the world is upbeat about its 2023 prospects. Cameco Corporation (NYSE:CCJ) (Saskatoon, Saskatchewan) is positioning itself as a major player in the global nuclear-power sector through an agreement to provide Ukraine with much-needed uranium; a partnership to purchase a major nuclear-equipment manufacturer; and a large number of long-term uranium-supply contracts signed in 2022. Industrial Info is tracking more than $750 million worth of active projects from Cameco, nearly 80% of which is attributed to a trio of uranium-mining projects in Saskatchewan.
Click on the image at right for a graph detailing Cameco's active projects, by project type.
"Demand for nuclear power, supported by growth across the near, medium and long term, is driving the best fundamentals we have ever seen for the nuclear fuel market. The growing structural gap has led to supply uncertainty, which was amplified in 2022," said Tim Gitzel, the chief executive officer of Cameco, in a quarterly earnings-related press release. "In 2022, we were successful in contracting 80 million pounds of uranium and 17 million kgU [kilograms of elemental uranium] of conversion services, with a record number of contracts signed in a market that has strengthened and is in durable growth mode."
Earlier this week, Cameco announced it had agreed to supply Energoatom, Ukraine's state-owned nuclear-energy utility, with enough natural uranium hexafluoride (UF6) to meet all of Ukraine's nuclear-fuel needs through 2035. All nine of the reactors at Energoatom's three nuclear-power plants across Ukraine are covered for the next 12 years in the agreement. The material to be provided equates to more than 40 million pounds of uranium concentrate.
Cameco also agreed to provide UF6 for all six reactors at the Zaporizhzhya Nuclear Power Plant, should Ukraine retake it from the Russians. (Russia captured Zaporizhzhya early in the ongoing war.) The material that would be provided equates to about 27.2 million pounds of uranium concentrate, according to Cameco.
Gitzel said the Ukraine contract "has the potential to be the single largest supply contract in Cameco's history." Industrial Info is tracking $7.5 billion worth of active projects from Energoatom across Ukraine, as well as progress at its active facilities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed reports for active projects, and can click here for a list of Energoatom plant profiles.
Cameco and Brookfield Renewable Partners LP (NYSE:BEP) (Toronto, Ontario) agreed in October to pay $7.9 billion to purchase nuclear-equipment manufacturer Westinghouse Electric Company (Cranberry Township, Pennsylvania). Cameco's deal with Brookfield--which owns hundreds of hydroelectric plants, windfarms and solar facilities--points to nuclear's growing presence alongside renewables as an alternative to fossil fuels. For more information, see October 13, 2022, article - Cameco, Brookfield Renewable to Purchase Nuclear Equipment Provider Westinghouse.
"The [Westinghouse] acquisition is expected to close in the second half of 2023 and is subject to customary closing conditions and certain regulatory approvals," Cameco said in its press release. "Once the transaction closes, Brookfield Renewable will beneficially own a 51% interest in Westinghouse and we will beneficially own 49%."
Despite the ongoing war, Ukraine's government is pursuing the construction of two new nuclear reactors at the Khmelnytsky Nuclear Power Plant, using Westinghouse technology. For more information, see February 1, 2023, article - Ukraine Advances Nuclear Power Plans Despite War.
Uranium Mines Set for Stronger Production
With its growing number of long-term supply commitments, Cameco expects to return to its highest possible production levels--or "tier-one run rate"--in 2023: "With the improvements in the market, the new long-term contracts we have put in place, and a pipeline of contracting discussions, our plan will now be for McArthur River/Key Lake to produce 18 million pounds (100% basis) starting in 2024, and to continue to operate Cigar Lake at its licensed capacity of 18 million pounds per year (100% basis) in 2024."
At the McArthur River Uranium Mine near Pinehouse, Saskatchewan, Cameco is nearing the restart of a stope-mining operation that will provide ore to be processed at its nearby Key Lake Uranium Mill. Cameco expects to further ramp up mining at McArthur River through 2024, from an initial 2 million pounds per year to as much as 15 million pounds per year by 2024. The Key Lake mill is undergoing a restart and ramp up over the same period to process material produced at McArthur River.
Subscribers can read detailed project reports on the restart and ramp up at McArthur River, and the restart and ramp up at Key Lake.
Subscribers also can read detailed plant profiles on the McArthur River Uranium Mine and Key Lake Uranium Mill.
Subscribers to Industrial Info's GMI Metals & Minerals Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Cameco.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Cameco's active projects, by project type."Demand for nuclear power, supported by growth across the near, medium and long term, is driving the best fundamentals we have ever seen for the nuclear fuel market. The growing structural gap has led to supply uncertainty, which was amplified in 2022," said Tim Gitzel, the chief executive officer of Cameco, in a quarterly earnings-related press release. "In 2022, we were successful in contracting 80 million pounds of uranium and 17 million kgU [kilograms of elemental uranium] of conversion services, with a record number of contracts signed in a market that has strengthened and is in durable growth mode."
Earlier this week, Cameco announced it had agreed to supply Energoatom, Ukraine's state-owned nuclear-energy utility, with enough natural uranium hexafluoride (UF6) to meet all of Ukraine's nuclear-fuel needs through 2035. All nine of the reactors at Energoatom's three nuclear-power plants across Ukraine are covered for the next 12 years in the agreement. The material to be provided equates to more than 40 million pounds of uranium concentrate.
Cameco also agreed to provide UF6 for all six reactors at the Zaporizhzhya Nuclear Power Plant, should Ukraine retake it from the Russians. (Russia captured Zaporizhzhya early in the ongoing war.) The material that would be provided equates to about 27.2 million pounds of uranium concentrate, according to Cameco.
Gitzel said the Ukraine contract "has the potential to be the single largest supply contract in Cameco's history." Industrial Info is tracking $7.5 billion worth of active projects from Energoatom across Ukraine, as well as progress at its active facilities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed reports for active projects, and can click here for a list of Energoatom plant profiles.
Cameco and Brookfield Renewable Partners LP (NYSE:BEP) (Toronto, Ontario) agreed in October to pay $7.9 billion to purchase nuclear-equipment manufacturer Westinghouse Electric Company (Cranberry Township, Pennsylvania). Cameco's deal with Brookfield--which owns hundreds of hydroelectric plants, windfarms and solar facilities--points to nuclear's growing presence alongside renewables as an alternative to fossil fuels. For more information, see October 13, 2022, article - Cameco, Brookfield Renewable to Purchase Nuclear Equipment Provider Westinghouse.
"The [Westinghouse] acquisition is expected to close in the second half of 2023 and is subject to customary closing conditions and certain regulatory approvals," Cameco said in its press release. "Once the transaction closes, Brookfield Renewable will beneficially own a 51% interest in Westinghouse and we will beneficially own 49%."
Despite the ongoing war, Ukraine's government is pursuing the construction of two new nuclear reactors at the Khmelnytsky Nuclear Power Plant, using Westinghouse technology. For more information, see February 1, 2023, article - Ukraine Advances Nuclear Power Plans Despite War.
Uranium Mines Set for Stronger Production
With its growing number of long-term supply commitments, Cameco expects to return to its highest possible production levels--or "tier-one run rate"--in 2023: "With the improvements in the market, the new long-term contracts we have put in place, and a pipeline of contracting discussions, our plan will now be for McArthur River/Key Lake to produce 18 million pounds (100% basis) starting in 2024, and to continue to operate Cigar Lake at its licensed capacity of 18 million pounds per year (100% basis) in 2024."
At the McArthur River Uranium Mine near Pinehouse, Saskatchewan, Cameco is nearing the restart of a stope-mining operation that will provide ore to be processed at its nearby Key Lake Uranium Mill. Cameco expects to further ramp up mining at McArthur River through 2024, from an initial 2 million pounds per year to as much as 15 million pounds per year by 2024. The Key Lake mill is undergoing a restart and ramp up over the same period to process material produced at McArthur River.
Subscribers can read detailed project reports on the restart and ramp up at McArthur River, and the restart and ramp up at Key Lake.
Subscribers also can read detailed plant profiles on the McArthur River Uranium Mine and Key Lake Uranium Mill.
Subscribers to Industrial Info's GMI Metals & Minerals Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Cameco.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
