Energoatom, Cameco sign uranium concentrate supply agreement with VostokGOK

MOSCOW. April 12 (Interfax) - Energoatom, the operator of Ukrainian nuclear power plants, and Canada's Cameco have signed an agreement which is the last stage for the implementation of the program for the use of Ukrainian uranium in the production of nuclear fuel for nuclear power plants in Ukraine, Ukrainian media reported, citing Energoatom's Telegram channel.

This is a contract for weighing, sampling, analysis, storage and organization of the transportation of uranium concentrate produced by Ukraine's VostokGOK or Eastern Mining and Processing Plant.

Energoatom CEO Pyotr Kotin and Cameco President and CEO Tim Gitzel signed the document in Canada on April 11.

Energoatom said the document regulated the physical supply of uranium concentrate from Ukraine to Canada and related conditions. It provides for the supply of the entire volume of uranium mined at VostGOK to Canada and the further use of uranium concentrate for conversion and supply of natural uranium hexafluoride or UF6 for enrichment.

The Ukrainian Energy Ministry has said Kotin and Gitzel signed an agreement on March 19 on the use of Ukrainian uranium in the production of nuclear fuel for all nuclear power plants in Ukraine.

In accordance with the agreements, between 2024 and 2035 Energoatom will be fully provided with natural uranium hexafluoride, which will be supplied for enrichment and further use in the production of nuclear fuel.

Energoatom and Cameco said in February that they had agreed on commercial terms for the supply in 2024-2035 of uranium hexafluoride, which will be used in the production of nuclear fuel for nuclear power plants in Ukraine. Cameco is expected to supply 100% of Energoatom's uranium hexafluoride needs for reactors at the Rovno, Khmelnitsky and Southern Ukrainian Nuclear Power Plants during the term of the contract. The total demand of these plants for the 12-year period is about 15,300 tonnes of uranium hexafluoride, the equivalent of about 40.1 million pounds of uranium concentrate, or U3O8.

Cameco is one of the world's largest suppliers of uranium fuel.

Energoatom operates the Rovno NPP with four nuclear power units and a total capacity of 2.835 GW; Khmelnitsky NPP with two units and total capacity of 2 GW; and Southern Ukrainian NPP with three units for 1 GW.