UPDATE 1-Cameco, Kazakhs to try to boost uranium output
Mon May 28, 2007 3:37pm
yahoo.reuters.com
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TORONTO, May 28 (Reuters) - Canadian uranium producer Cameco Corp. (CCO.TO: Quote, Profile , Research) said on Monday it will join forces with the Kazakh national atomic company to boost uranium production in the former Soviet republic.
Under the terms of the nonbinding memorandum of understanding, Cameco said it will work with Kazatomprom to study the feasibility of constructing a uranium conversion facility in Kazakhstan.
Cameco would provide the technology and potentially hold an interest of up to 49 percent in the project, the company said in a statement.
The deal also foresees an eventual doubling of uranium production at Kazakhstan's Inkai uranium deposit. Total annual production could reach 10.4 million pounds, Cameco said.
The Inkai project is jointly owned and operated by Cameco and Kazatomprom, which have won regulatory approval to construct a full-scale recovery mine and mill with commercial production set to begin in 2008.
Saskatoon, Saskatchewan-based Cameco said it expects that binding agreements will be signed this year, and various government approvals will be required as the agreements are implemented.
Shares of Cameco were down 8 Canadian cents, or 0.15 percent, at C$55.02 at midafternoon on Monday on the Toronto Stock Exchange.
($1=$1.08 Canadian) |
