Canada-based Cameco has signed an agreement with the Department of Atomic Energy of India to supply 7.1 million pounds of uranium concentrate over the next five years for power generation purposes.
The long-term export contract for Canadian uranium is the first Indian deal for Cameco, which will source the concentrate from its operations in northern Saskatchewan.
The deal, which will last till 2020, marks the increased energy co-operation between the two countries, and is in-line with the Canadian Government’s initiative to promote trade and investment with the Asian country.
Cameco president and CEO Tim Gitzel said: "This contract opens the door to a dynamic and expanding uranium market.
"Much of the long-term growth we see coming in our industry will happen in India and this emerging market is key to our strategy.
"We expect it will lead to growing trade in nuclear products and services between our nations for the generation of clean nuclear electricity."
Uranium exports from the North American country are authorised by the Canada-India Nuclear Co-operation Agreement (NCA), which came into force in September 2013.
According to the agreement and a related administrative arrangement, Canadian firms are allowed to send across nuclear items to India for peaceful uses. The exports, however, will have to comply with Canada’s nuclear non-proliferation policy and will be scrutinised for necessary export licenses and permits.
The NCA is being implemented by Canadian Nuclear Safety Commission, which makes sure that the nuclear exports from the country are delivered to those facilities which fulfil the International Atomic Energy Agency safeguards.
India is the second fastest evolving market globally in the nuclear fuel segment. Presently, the country has 21 reactors generating 6,000MW of nuclear power, which suffices around 3% of its power demands.
The Asian nation has planned to set up six more reactors by 2017 having a combined generation capacity of 4,300MW. The country has set a target of 45,000MW nuclear power generation for 2032.