Company News

UPDATE 1-Canada and Kazakhstan reach nuclear trade deal

* Deal to supply nuclear material, equipment, technology

* Cameco Corp to benefit from agreement

* Agreement to ensure peaceful nuclear uses only (Adds quotes, details)

OTTAWA, Sept 24 (Reuters) - Canada and Kazakhstan have reached a nuclear cooperation agreement to open up Kazakhstan’s civil nuclear market to Canadian uranium and technology suppliers, Trade Minister Stockwell Day said on Thursday.

In a statement, the government said that one of the Canadian companies that will benefit from the agreement with the Central Asian country is Cameco Corp CCO.TO, one of the world's largest uranium producers.

Cameco owns 60 percent of a venture that operates the Inkai uranium deposit in Kazakhstan.

“Once implemented, this agreement will allow us to expand our role and presence in the country and develop partnerships that will allow Cameco and Kazatomprom to work together on opportunities to convert uranium,” said Gerald Grandey, Cameco’s chief executive.

Day said Canada expects to expand its role in Kazakhstan’s oil, gas and uranium extraction industries, as well as in the service of pipeline equipment.

Canada controls about 10 percent of the world’s nuclear reactor market and its nuclear energy industry exports about C$1.2 billion worth of products and services a year.

The government said the agreement with Kazakhstan would ensure that all nuclear material, equipment and technology from Canada would be used for peaceful purposes only.

The legal text of the agreement must now be finalized before the two countries sign and implement it. (Reporting by Louise Egan; editing by Peter Galloway)