SASKATOON - Cameco has signed a deal with China Guangdong Nuclear Power Holding Co. to supply 29 million lb of uranium concentrate through 2025. Currently, uranium prices are approximately US$60 per lb. The contract is subject to Chinese government approval.
Cameco has a 2010 production target of 22 million lb of uranium, 17% more than 2009. Average unit cost of production has decreased 13% during the same time. The company has plans, that include the Cigar Lake mine in Saskatchewan, to double production by 2018.
China's nuclear industry currently generates about 11 GW of electricity and plans to boost that to 120-160 GW by 2030. Guangdong operates three nuclear power plants and has 14 more under construction. By 2020 the company says it will have over 50 GW on line.
The Cigar Lake mine is to begin production in mid-2013. Learn the details at www.Cameco.com.