* To supply 29 mln pounds of uranium concentrate
* To supply through 2025
Nov 24 Cameco Corp (CCO.TO) signed a long-term
agreement to supply 29 million pounds of uranium concentrate to
China's state-owned nuclear power company, at a time when the
Asian superpower steps up its ambitious nuclear power
China Guangdong Nuclear Power Holding Co Ltd (CGNPC), the
country's largest clean-energy enterprise, operates three
nuclear power stations and is constructing 14 nuclear power
Cameco has agreed to supply uranium concentrate through
2025, it said in a statement late on Tuesday. CGNPC has about
17,000 megawatts (MW) of nuclear capacity under construction
and expects over 50,000 MW 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," Cameco Chief Executive
Jerry Grandey said.
By 2010, China aims to produce 80-112 gigawatts (GW) of
electricity from nuclear power, up from the current capacity of
11 GW. It will need an additional 82 million pounds of uranium
to start and fuel those new reactors.
Camceo, the largest uranium producer in Canada, said its
expectation to double production by 2018 aligns well with
China's nuclear reactor construction program.
Global uranium demand is expected to grow 32 percent by
2015, according to RBC Capital Markets, a forecast that already
has uranium producers' share prices climbing.
Analysts are urging investors to jump on the bandwagon and
buy shares of Cameco (CCO.TO), Uranium One UUU.TO, Paladin
Energy (PDN.AX) (PDN.TO) and other industry stalwarts.
The Saskatoon, Saskatchewan-based Cameco's shares, which
have gained 6 percent this year, closed at C$36 on Tuesday on
the Toronto Stock Exchange.
(Reporting by Aftab Ahmed in Bangalore; Editing by Don
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