Canadian uranium producer, Cameco, has signed its first uranium supply agreement with India.

The contract with India’s Department of Atomic Energy of India is worth around CAD350 million at today’s uranium prices and covers the supply of 7.1 million pounds of uranium concentrate (3000tU) from 2015 to 2020.

Cameco will source the uranium from its Canadian operations in northern Saskatchewan.

"This contract opens the door to a dynamic and expanding uranium market," said Tim Gitzel, Cameco’s president and CEO. "Much of the long-term growth we see coming in our industry will happen in India and this emerging market is key to our strategy."

India currently operates 21 nuclear reactors with an installed capacity of 6000MW that meet about 3% of the country’s electricity needs. Another six reactors (4300MW) are under construction and expected to come online by 2017. By 2032, India hopes to have 45GW of nuclear capacity online.

The Canadian nuclear industry applauded Cameco’s breakthrough agreement to supply uranium to India.

"This agreement speaks to India’s tremendous progress in using nuclear energy for peaceful purposes," said Dr. John Barrett, President and CEO of the Canadian Nuclear Association. "Canadian nuclear suppliers face excellent opportunities, as Cameco has just illustrated."

Export of Canadian uranium to India for the generation of electricity is authorised by the Canada-India Nuclear Co-operation Agreement, which came into force in September 2013.

Photo: The Cigar Lake project (Source: Cameco)