Facility can play essential role in fuelling global nuclear energy ambitions
Cameco and Orano Canada have reached agreement with Tepco Resources, a subsidiary of Japan-based Tokyo Electric Power Company, to acquire Tepco’s 5% participating interest in the Cigar Lake joint venture in Canada.
Upon closing, Cameco's ownership stake in the Cigar Lake uranium mine in northern Saskatchewan will increase to 57.4% for a consideration of CAD115m (€71m, $83m), while Orano's share will increase to 42.5%.
The transaction is expected to close in the third quarter of the year.
“Cigar Lake is among the world’s best uranium mines, producing the highest-grade uranium ore from a safe, reliable, and cost-effective operation,” said Cameco’s chief executive officer Tim Gitzel.
“Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fuelling global ambitions to expand nuclear energy generation.”
Cigar Lake’s reserve and resource base includes proven and probable reserves of 172-million pounds of triuranium octoxide (U3O8), measured and indicated resources of about 26-million pounds and inferred resources of 20-million pounds.
Since it started production in 2014, Cigar Lake has produced about 174 million packaged pounds.
The mine is set to produce between 17.5 million and 18 million pounds of uranium concentrate this year, Cameco said.
Cameco and Orano are working to extend the life of the mine to 2036, with planned capital projects including construction of a freeze pad, freeze distribution and underground infrastructure.
