9 Feb 2023 14:04

Ukraine's Energoatom and Canada's Cameco agree commercial terms for uranium hexafluoride supply through 2035

MOSCOW. Feb 9 (Interfax) - Energoatom, Ukraine's state-owned nuclear energy company, and Canada's Cameco Corporation have reached agreement on commercial terms for a major supply contract for Cameco to provide natural uranium hexafluoride to meet the nuclear fuel needs of Ukrainian nuclear power plants (NPPs) through 2035.

"The companies have reached agreement to sign a 12-year contract will run from 2024 through 2035. The contract will see Cameco supply 100% of Energoatom's uranium hexafluoride requirements (consisting of uranium and conversion services) for the nuclear reactors at its Rovno, Khmelnitsky and South Ukraine nuclear power plants for the duration of the contract," Ukrainian media outlets quoted Energoatom as saying in a statement circulated on social media.

According to Energoatom President Pyotr Kotin, the companies have agreed the key commercial terms of their contract, but the contract itself is subject to finalization.

"Energoatom will keep working on achieving the energy independence of Ukraine. The development of cooperation between companies in the production and supply of nuclear materials and nuclear fuel is one of the most important conditions for the further safe functioning of our domestic nuclear power generation," Kotin said.

Cameco President and CEO Tim Gitzel, for his part, said that Cameco is proud of a key role the company will play in helping Ukraine gain energy independence.

"This has the potential to be the single largest supply contract in Cameco's history. Commercial arrangements between Cameco and Energoatom began modestly in 2018 and have grown today into a significant strategic partnership," Gitzel said.

The contract amounts are subject to the customary volume flexibility provisions commonly contained in supply agreements. Financial terms of the contract are confidential and will not be released.

Cameco is one of the largest global providers of natural uranium and uranium conversion services, Energoatom said. The Canadian company's uranium production in 2021 accounted for 9% of the world's uranium output.

As reported, in September 2019 Energoatom and Cameco signed a memorandum of understanding in the nuclear and fuel sector with the aim of developing cooperation in producing and delivering nuclear material and nuclear fuel.

Energoatom is the operator of all functioning nuclear power plants in Ukraine. It operates the South Ukraine, Rovno and Khmelnitsky NPPs with power units equipped with water-water reactors.