Cameco (TSX: CCO; NYSE: CCJ) has lifted its ownership of the Cigar Lake mine in northern Saskatchewan after buying out Japan’s TEPCO Resources’ joint venture interest together with Orano in a C$115.7 million ($83.6 million) deal.
In a statement on Monday, the uranium miner said that the company and its French peer would acquire TEPCO’s participating 5% interest, with each of them getting 2.871% and 2.129%, respectively. Upon closing, Cameco’s ownership of the mine will rise to 57.418%, while Orano’s share will increase to 42.582%, consolidating their ownership in what is considered the world’s highest-grade uranium mine. Cigar Lake is about 660 km north of Saskatoon.
“Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fueling global ambitions to expand nuclear energy generation,” Cameco CEO Tim Gitzel said in a release.
The two companies have been long-time partners at Cigar Lake, one of the world’s top uranium mines by output, producing 174.5 million lb. of uranium concentrates (U3O8) since it was commissioned in 2014. The site hosts about 479 million tonnes of proven and probable reserves grading 16.3% U3O8 for 172.4 million lb. U3O8.
The deposit was discovered in the early 1980s and subsequently developed by Cameco and Orano, with the former serving as the operator. The companies are also partners on the McArthur River mine and Key Lake mill, both also in northern Saskatchewan. TEPCO, part of the Japanese utility giant, later joined the venture with a small participating interest.
2026 outlook
The amount paid by Orano in the transaction was undisclosed. The deal is expected to close in the third quarter of 2026, the company added.
This year, the mine is expected to produce between 17.5 to 18 million lb. of U3O8, according Cameco’s estimates. The company also said it is continuing production and development activities in the area that is currently being mined, while working to extend the life of the mine to 2036.
Shares in Cameco dipped almost 1% to $154 apiece at mid-day Monday. The company has a market capitalization of US$47.6 billion.
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