A few weeks ago, Cameco announced a deal to supply China Guangdong Nuclear Power Holding (CGNPC) with 29 million pounds of uranium concentrate through 2025. That was preceded in June by Cameco announcing a deal to supply the China Nuclear Energy Industry Corp. (CNEIC) with 23 million pounds of uranium concentrate through 2020.
Cameco CEO Jerry Grandey said there are still opportunities for the company in China.
"There are two major nuclear utilities [in China] and [CGNPC] would be the second one, so it really positions Cameco well in a growing market and hopefully obtain more business as time goes on," Grandey told a local newspaper.
The CEO estimated between 10 and 15 per cent of Cameco's uranium will be sent to China during the next decade. The United States remains the company's largest export destination, receiving around 50 per cent of Cameco's product.
With both CGNPC and CNEIC expanding their nuclear power capacity, and the country as a whole increasing its nuclear energy generation base, Cameco hopes to capitalize on the nuclear program.
China is expected to increase its nuclear capacity from 11 gigawatts (GW) today to at least 80 GW by 2020 and between 120 and 160 GW by 2030.
"Over time, as their program succeeds and as other utilities in China - many of whom are bigger than the two utilities that we've got contracts with, but they're not nuclear utilities so far - they all want to get into the nuclear construction business, so as they do we see plenty of other opportunity in China," Grandey said.
Cameco, which is working toward a goal of producing 40 million pounds of uranium by 2018, will be "absolutely" able to meet its current commitment to send 52 million pounds of uranium concentrate to its Chinese customers through 2025.
The company now produces about 22 million pounds of uranium annually.
from Western Investor, January 2011
