Wall claims 'great day' for province
[ http://www.thestarphoenix.com/business/ ... z1lzzRfe3B ]
An agreement that is expected to allow Canadian companies to ship uranium to China is "very, very important" for Saskatchewan, Premier Brad Wall said on Thursday in reaction to news from Prime Minister Stephen Harper's visit to the Asian superpower.
"It's a great day for Saskatchewan and we want to thank the federal government and the prime minister for raising a very Saskatchewan issue on their trade mission and making progress," Wall told reporters Thursday at the Legislative Building.
Though a small amount of Saskatchewan uranium has been shipped to China before under special agreements, the new trade agreement signed by Harper is expected to allow Saskatchewan producers to directly sell Canadian yellowcake - a type of uranium concentrate powder - to China, he continued.
"We've worked hard to promote the fact that between 20 and 26 per cent of the uranium in the world is mined here and produced here in the province, and that we need to continue opening up markets," Wall said, noting efforts to sell uranium to China, as well as India, have long been in the works and are now reaching fruition.
"The No. 1 economy in the world in terms of its move toward nuclear power is by far China," he said. "We were shut out of that market. . We were stymied in the world's largest market.
"This is a very, very important development."
Wall said the new deal will allow Saskatoon-based Cameco Corp. to move ahead with supply agreements originally signed with China in 2010 which could be worth as much as $3 billion through 2025. The government expects hundreds of millions in royalties from that arrangement.
"We have Saskatchewan uranium being used to generate electricity," Wall said. "This also has an important environmental impact on the world. China is building a coal plant on average once every couple of weeks. Of course, the more nuclear power they generate, the less reliant they'll be on coal. Uranium in terms of CO2 is a clean source of energy."
The deal with China could also lead to more aboriginal employment in Saskatchewan, Wall said, noting Cameco's mines in the province's north already employ workforces comprised of about 42 per cent First Nations and Metis individuals.
The premier said he expects it will be "a number of months" before the details of the trade agreement are finalized and exports to China can officially begin. But he noted that based on his experience with the Chinese market, the announcement wouldn't have been made Thursday "if that's not where we are at."
The agreement also requires verification that Canadian uranium is being used for appropriate civilian purposes. Wall indicated the deal will be at least as strict as a similar one Australia has with China that involves numerous checks and balances.
"The prime minister has been very clear: Canadian uranium is for electricity only," Wall said. [ . . . ]
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Lac La Ronge band applauds Canada-China uranium deal
[ http://www.vancouversun.com/business/Ro ... story.html ]
The chief of one of Saskatchewan’s largest First Nations is applauding the recent uranium deal struck between Canada and China, saying it will mean more jobs and economic development in the province’s north.
“This will mean more investment, job opportunities, business development, and community support initiatives that will continue to benefit Saskatchewan’s north over the coming years,” Lac La Ronge Indian Band Chief Tammy Cook-Searson said Friday in a statement.
“We have many band members and several businesses that serve the uranium mining industry so we share in their success.”
During Prime Minister Stephen Harper’s visit to China this week, one of the many deals concluded was an agreement to export Canadian uranium to China. Approximately one-quarter of the world’s uranium is mined in northern Saskatchewan.
The Lac La Ronge Indian Band and its business arm, Kitsaki Management LP, have worked in partnership for years with industry and all levels of government to support uranium development, the band stated in the release.
Kitsaki has investments in a number of companies that provide services to the uranium mining industry, including Northern Resource Trucking Limited Partnership, Athabasca Catering Limited Partnership, and Canada North Environmental Services Limited Partnership. The company also has businesses with the potential to benefit from increased mining activity, including Asiniy Gravel Crushing Limited Partnership, and Kitsaki Procon Joint Venture. [ . . . ]
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Canada Allows Exports of Uranium to China
[ http://online.wsj.com/article/SB1000142 ... lenews_wsj ]
EDWARD WELSCH WSJ Online 10 February 2012
CALGARY, Alberta - Canada said it will allow the sale to China of uranium for use in nuclear-energy generation, clearing the way for Canadian
producers to compete with China's current suppliers in Kazakhstan, Australia and Russia.
The deal was one of several trade pacts signed between the Chinese and Canadian governments and companies during a visit to Beijing by Canadian Prime Minister Stephen Harper.
Mr. Harper has said opening new markets in Asia for Canada's energy and mining resources is a priority, as the country moves to improve ties with China and reduce its reliance on the U.S. His government ramped up those efforts after the Obama administration rejected a crude-oil pipeline plan. Almost all of Canada's oil exports go to the U.S.
The new agreement allows the sale to China of yellowcake, a concentrated uranium powder used to make fuel rods for nuclear reactors. It can also be used to make weapons.
The pact will ensure that uranium exported to China will be used only for peaceful, civilian purposes, the Canadian prime minister's office said.
Canada produces about a fifth of the world's uranium and exports more than 80% of its production, according to the World Nuclear Association. It is now the world's No. 2 exporter, after Kazakhstan. Canada sends most of its exports to the U.S., Europe and Japan.
The fast-growing Chinese market has long been closed to Canadian producers.
In 1976, after India used a Canadian-made nuclear reactor to construct its first nuclear bomb, Canada barred exports of uranium and nuclear reactors to countries that hadn't agreed to stop the spread of nuclear weapons technology - a list that at the time included China.
A 1994 agreement between Canada and China allowed the sale of reactors, but until this week's amendment to that pact, Canada hadn't yet relaxed its restriction on selling nuclear fuel to China.
"This agreement will help Canadian uranium companies to substantially increase exports to China, the world's fastest growing market for these
products," Mr. Harper said. "It will generate jobs here at home while contributing to the use of clean, reliable energy in China."
The pact cheered uranium producers in Canada. Cameco Corp., the world's largest uranium producer, based in Saskatoon, Saskatchewan, said it could now move forward on two contracts signed in 2010 to deliver a total of 52 million pounds of yellowcake to China by 2025.
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Harper relaxes accountability rules for China’s use of uranium
[ http://www.theglobeandmail.com/news/pol ... le2333398/ ]
campbell clark AND shawn mccarthy
OTTAWA— From Friday's Globe and Mail
Published Thursday, Feb. 09, 2012 9:26PM EST Last updated Friday, Feb. 10, 2012 5:53AM EST
Stephen Harper has chosen to override the qualms of the government’s non-proliferation experts to permit a multibillion-dollar business in exports of Saskatchewan uranium to China’s nuclear industry.
A deal the Prime Minister announced in China, a protocol amending Canada’s nuclear co-operation agreement with China to allow the export of uranium concentrate, seals far closer ties with Beijing than ever seemed possible in Mr. Harper’s early days in power.
Saskatchewan Premier Brad Wall lobbied Mr. Harper personally over the past year to reach the arrangement with Beijing. It means Saskatchewan’s Cameco Corp. can now use Canadian uranium in two contracts worth up to $3-billion.
“This means new investment in the province. I think it means jobs,” Mr. Wall told CTV News.
But the deal with Beijing has raised concerns in Ottawa, because it includes less stringent accounting for how the uranium is used than Canada typically demands, sources said. When Australia made a similar deal with China in 2008 that included less accountability, it faced criticism from other uranium suppliers, including Canada.
China insisted on getting the same sort of accounting requirements for Canadian exports that it got from Australia. As well as using uranium for other purposes, it also has military nuclear programs, which are not subject to accounting or inspection.
“The issue is requiring full safeguards, full accountability,” said Ernie Regehr, a fellow at the University of Waterloo’s Institute of Peace and Conflict Studies.
In 2010, Saskatchewan’s Cameco struck two long-term deals to sell 52 million pounds of uranium concentrate to China, but had to ship uranium from other countries, such as Namibia and Kazakhstan, because exporting Canadian uranium to China was not allowed, and federal officials were uneasy with the idea of easing accounting standards to allow it.
“This agreement has been worked on since then, so this is the culmination of that work,” Cameco chief executive Tim Gitzel said in a telephone interview from Zhenjiang, where he and Natural Resources Minister Joe Oliver will be visiting a nuclear reactor under construction.
Now, the booming Chinese market will underpin a planned expansion at Cameco that will increase production to 40 million pounds a year by 2018 from 22 million pounds, with potential for an additional 20 million pounds after 2020.
While the Canadian uranium deal raised questions, there are differences over whether it presents a real risk. China already has nuclear weapons, is believed to have halted stockpiling, and has shown restraint in limiting its arsenal. [ . . ]
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