Japanese utility TEPCO terminates contract, Cameco to pursue legal rights

In a hastily convened conference call this morning, CEO Tim Gitzel of Cameco Corporation (TSX: CCO; NYSE: CCJ) vowed he would “vigorously pursue remedies to […]

Topics

Commodities

Companies

In a hastily convened conference call this morning, CEO Tim Gitzel of Cameco Corporation (TSX: CCONYSE: CCJ) vowed he would “vigorously pursue remedies to recover value for our shareholders and other stakeholders” after Tokyo Electric Power Co. (TEPCO) confirmed it is terminating a 2009 uranium supply contract worth about $1.3 billion in revenue to the Canadian uranium producer between now and 2028. The Japanese utility is claiming force majeure, arguing that it has been unable to operate its nuclear plants in Japan for 18 consecutive months due to tough government regulations enacted after the Fukushima nuclear accident in March 2011. TEPCO instructed Cameco on Jan. 31 not to make its scheduled Feb. 1 delivery – after first notifying the Saskatoon-headquartered company on Jan. 24 that it was planning to terminate the contract. Gitzel rejected TEPCO’s claim, calling it “without merit.” “It appears to us, and it is our opinion, that TEPCO simply doesn’t like the terms they committed to, particularly the price, and want to escape from the agreement,” said Cameco’s commander-in-chief. Read the entire story at The Northern Miner.

Comments

Your email address will not be published. Required fields are marked *

Mar 27 2024 - Mar 28 2024
Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024