A recently approved agreement that will allow Russian uranium to enter the American marketplace could cost Canadian producers hundreds of millions of dollars in lost exports.
However, Rita Mirwald, director of corporate affairs and investor relations for Canadian uranium giant Cameco (TSE), cautioned that it is still too early to assess the full impact of the deal. “In the long term, we feel it will flatten uranium prices and slow down price recovery,” Mirwald told The Northern Miner. The agreement will probably bring on and maintain marginal U.S. production, she added.
Under the 10-year deal, Russia can ship 6.6 million lb. of uranium to the U.S. in 1994 and 1995, with lesser amounts in succeeding years. Anyone buying Russian uranium will be required to purchase an equal amount of U.S.-produced uranium. The agreement effectively closes off 20% of the American market. Canadian officials say the agreement will allow Russia to sell uranium below world prices, while U.S. producers will be able to charge prices above those of other countries.
Be the first to comment on "Uranium pact hurts Canadian producers"