New Pricing Structure Agreed For Russian Weapons-Origin Uranium
Written by NucNet
Thursday, 12 June 2008
12 Jun (NucNet): An agreement has been reached on the pricing structure
under which Russia supplies uranium derived from dismantled nuclear
weapons to the Cameco Corporation and partners Areva and Nukem.
Cameco said yesterday that the agreement, which is subject to approval by the Russian and US governments and Cameco's board, concerns the remaining term of a commercial agreement which ends in 2013.
Cameco buys about 7 million pounds of uranium annually from Russia's state-owned nuclear fuel cycle company Techsnabexport (Tenex) under the commercial agreement. Cameco sells the uranium to utilities around the world to generate electricity. The purchase price was agreed to in 2001, when uranium prices were lower than they are today. However, last year Tenex called for a review of the pricing structure.
Jerry Grandey, Cameco's president and chief executive officer, said discussions between Tenex, Cameco and Cameco's western partners had resulted in a "fair and reasonable" solution that enables all parties to share in the benefits of increased uranium prices.
The existing volumes available to Cameco under the commercial agreement remain the same and the new pricing structure makes no changes in the years 2008 to 2010. However, during 2011 to 2013, about 7 million pounds of uranium (of about 23 million pounds available to Cameco) would have higher prices.
