Cameco signs deal with Kazakhstan

Toronto-listed Cameco has signed a deal to help develop uranium deposits in Kazakhstan, a former republic of the U.S.S.R.

The 10-year agreement calls for Cameco and Uranerz Exploration & Mining to share their expertise with the Central Asian republic and co-operatively develop its substantial uranium reserves.

“This agreement provides Cameco with an opportunity to play a major role in uranium development in a country which has proven, extensive, in situ, leachable uranium resources,” said Bernard Michel, president and chief executive officer of Cameco.

KATEP, the Kazakh agency which negotiated the deal, benefitted from the experience of Cameco and Uranerz in negotiating long-term contracts. Before this agreement, KATEP had only “some success in selling material in the short-term spot market,” the press release noted.

The agreement includes an investment of $3 million by the two Western companies.