Energoatom strikes deal with one of world’s biggest uranium companies

10 February, 10:58 AM
The contract is subject to finalization in the first quarter of 2023. (Photo:Cameco Connects via Facebook)

The contract is subject to finalization in the first quarter of 2023. (Photo:Cameco Connects via Facebook)

Ukraine's state nuclear operator Energoatom and Canadian uranium company Cameco agreed a large contract for supplying Ukraine with volumes of natural uranium hexafluoride, or UF6, sufficient for the country’s needs through 2035.

The deal also includes the option for supplies for Zaporizhzhia Nuclear Power Plant, which is currently under the control of Russian invasion forces, Cameco said in a press release issued on Feb. 8.

Key commercial terms have been already agreed to, including pricing, volume and timing. Other aspects are to be elaborated by the end of the first quarter, 2023.

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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,” said President of Energoatom, Petro Kotin.

Comeco noted that this agreement has potential to be the largest ever for the Canadian company.

The contract will run for 12 years from 2024 until the end of 2035. All deliveries will be made in UF6 form. It also will be flexible, taking into account the current situation in Ukraine.

The contract with Cameco will cover 100% of Energoatam's demand in UF6 (including uranium and conversion services) for nine nuclear reactors in Rivno, Khmelnytskyi and South Ukraine nuclear power plants for the entire validity period.

The total demand of these NPPs for 12 years of contract's validity is approximately 15.3 million kg of uranium in the form of UF6.

The contract will also include an option for Cameco to supply up to 100% of the fuel for the six reactors of the Zaporizhzhya NPP, which is currently under Russian occupation.

If it resumes operations in 2024, Zaporizhzhia NPP will need approximately 10.4 million kilograms of uranium in the form of UF6.

Energoatom reportedly estimates the damage caused by the Russian occupation to Zaporizhzhia NPP at about UAH 40 billion.

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