NEWS: Where would Uranium go
Andrey Dmitriev
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Aug. 18, 1997--Cameco (ME,
TSE:CCO, NYSE:CCJ) Cameco Corporation today reports that it has
signed an agreement in principle to purchase uranium resulting from
the dismantlement of Russian nuclear weapons.
The agreement covers the purchase by Cameco, Cogema (a French 89
percent state-owned private company specializing in the nuclear fuel
cycle) and Nukem Inc. (a privately owned US uranium trader), of the
majority of the natural uranium hexafluoride (the uranium) becoming
available through 2006 as a result of the dilution in Russia of
weapons grade highly enriched uranium (HEU) to commercial grade low
enriched uranium for delivery to the United States Enrichment
Corporation (USEC).
Cameco and the other purchasing companies will pay a discounted
market price for the uranium and will guarantee minimum prices
subject to certain conditions being met. Each company will market
its share independently in full compliance with the USEC
Privatization Act and other applicable laws.
In conjunction with the purchase, Cameco, Cogema and Nukem will
advance, to the Russian Federation Ministry of Atomic Energy
(Minatom), up to one-half of each year's aggregate purchase price to
a maximum of $100 million (US) against deliveries.
Certain defined quantities of weapons derived uranium will not be
purchased by Cameco, Cogema and Nukem and will be retained by Minatom
for HEU blending, for consumption in Russia and for delivery to
customers through its commercial representatives, Techsnabexport and
Global Nuclear Services and Sales.
The uranium has become available following the announcement, in 1993,
of a 20-year agreement between the United States and Russia to
dismantle nuclear weapons. A majority of the resulting 400 million
pounds of Russian U(3)0(8) (equivalent) will be sold for use in
western nuclear power plants. The purchase agreement with Cameco,
Cogema and Nukem is for at least 10 years.
Bernard Michel, Cameco's chair, president and chief executive
officer, said that the 10-year deal, which could be extended beyond
2006, caps four years of discussions and negotiations with the
Russians and strengthens Cameco's position in the marketplace.
"Such an arrangement alleviates the market uncertainties surrounding
the disposition of this HEU derived material," he said, "and it
provides Cameco, which will purchase some 45 percent of the available
uranium, with a new and significant source of supply in addition to
its own production. Although Cameco and other market participants
have accounted for this material in their long-term forecasts of
uranium supply," Michel added, "Until now, no one knew how it was
going to be sold and by whom. We are very pleased to see this
uncertainty settled and are very proud to play a role in the
transformation of the former weapons uranium to the peaceful
production of electricity."
Cameco anticipates no change in either its production levels at
existing operations or in its uranium mine development plans as a
result of the acquisition of this material.
While the agreement is subject to formal documentation, negotiations
are expected to proceed expeditiously.
Cameco, with its head office in Saskatoon, Saskatchewan, is the
world's largest publicly traded uranium company and a growing gold
producer. Its uranium products are used to generate electricity in
nuclear power plants around the world, providing one of the cleanest
sources of energy available today.
CONTACT:
Cameco Corporation
Alice Wong, 306/956-6337
or
Elaine Kergoat, 306/956-6315
Fax: 306/956-6318
KEYWORD: NEW YORK
BW0168 AUG 18,1997
----
Andrey Dmitriev www.qc.edu/~op8qc
Please remove NOSPAM from e-mail address to e-mail.
Timothy Watson
NetComra...@worldnet.att.net (Andrey Dmitriev) writes:
> SASKATOON, Saskatchewan--(BUSINESS WIRE)--Aug. 18, 1997--Cameco (ME,
> cycle) and Nukem Inc. (a privately owned US uranium trader), of the
> majority of the natural uranium hexafluoride (the uranium) becoming
> available through 2006 as a result of the dilution in Russia of
> weapons grade highly enriched uranium (HEU) to commercial grade low
Are they actually going to trust a company with the name Nukem?
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