Canadian uranium producer Cameco announced November 23 that it has signed an agreement with China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) to supply 29 million pounds of uranium concentrate under a long-term agreement through 2025.
CGNPC operates three nuclear power stations with nearly 5,000 MW of installed generating capacity and has 17 reactors (c.17,000 MW) of nuclear capacity under construction. CGNPC expects to have over 50,000 MW on line by 2020.
"This long-term supply agreement with China Guangdong Nuclear Power is a significant step for our company in the world's fastest growing uranium market," said Cameco CEO Jerry Grandey in a statement. "China Guangdong Nuclear Power has 14 nuclear power units currently under construction and is commencing preliminary work on another nine units. This deal leaves us well positioned to serve the company's growing uranium requirements."
China plans to increase its nuclear capacity from the current 11 gigawatts (GW) to at least 80 GW by 2020. A further increase to 120-160 GW or more is planned by 2030.
"This agreement is further evidence that our plan to double uranium production by 2018 aligns well with China's remarkable nuclear reactor construction program," added Grandey.
The agreement follows signing of a framework agreement with CGNPC in June 2010. The long-term supply agreement with CGNPC is subject to Chinese government approval.