Formerly | Canadian Mining and Energy Corporation |
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Company type | Public |
| |
Industry | Mining, energy |
Predecessors | |
Founded | 1988 |
Headquarters | Saskatoon, Saskatchewan, Canada |
Key people | Ian Bruce (chairman) Tim Gitzel (president & CEO) |
Products | Uranium, electricity |
Revenue | CA$1.475 billion (2021) [1] |
Number of employees | 2,640 (2023) |
Website | cameco |
Cameco Corporation (formerly Canadian Mining and Energy Corporation) is the world's largest publicly traded uranium company, based in Saskatoon, Saskatchewan, Canada. [2] In 2015, it was the world's second largest uranium producer, accounting for 18% of world production. [3] [4]
The Canadian Mining and Energy Corporation was formed in 1988 by the merger and privatization of two Crown corporations: the federally owned Eldorado Nuclear Limited (known previously as Eldorado Mining and Refining Limited) and Saskatchewan-based Saskatchewan Mining Development Corporation (SMDC). The name was later shortened to "Cameco Corporation".
The new company was initially owned 62% by the provincial government and 38% by the federal government. The initial public offering (IPO) for 20% of the company was conducted in July, 1991. Government ownership of the company decreased over the next eleven years, with full privatization occurring in February, 2002.
In 1996, Cameco acquired Power Resources Inc., the largest uranium producer in the United States. This was followed in 1998 by the acquisition of Canadian-based Uranerz Exploration and Mining Limited and Uranerz U.S.A., Inc.
In 2008, Cameco purchased a 24% stake in Global Laser Enrichment (GLE), the exclusive licensee of the proprietary Separation of Isotopes by Laser Excitation (SILEX) technology developed by SILEX Systems Limited. GLE is developing this third-generation uranium enrichment technology. In 2021, Cameco and SILEX purchased GE-Hitachi's 76% stake in GLE, leaving Cameco with 49% of the company. [5]
In 2011, Cameco signed an agreement with Talvivaara Mining Company whereby Cameco would pay US$60 million to construct a uranium extraction circuit at the Talvivaara nickel-zinc mine in Sotkamo, Finland. Talvivaara would then pay back the initial construction costs in the form of uranium concentrate; once the initial costs were paid Cameco would continue to purchase the uranium concentrate at a pricing formula based on market price on the day of delivery. [6]
In 2012, it acquired a nuclear fuel intermediary, Nukem Energy. [7]
In 2016, Cameco suspended operations at its Rabbit Lake mine, due to low uranium prices. [8] In 2017, it suspended operations for at least 10 months at its McArthur River mine and Key Lake mill, [9] converting that to an indefinite shutdown in 2018 involving the layoff of about 700 staff. [10]
In October 2022, Cameco along with Brookfield Renewable Partners announced the acquisition of Westinghouse Electric Company in a US$7.9 billion deal including debt. Cameco will own a 49% interest in the company as part of the deal. [11] [2] The acquisition was completed in November 2023. [12]
Cameco operates uranium mines in North America and Kazakhstan, including McArthur River-Key Lake, the world's largest uranium producer, and Cigar Lake, the world's highest grade uranium mine, both in Saskatchewan. Other operations in Saskatchewan include a mine and mill at Rabbit Lake, currently in care and maintenance.
In the United States, Cameco operates uranium mines in the states of Nebraska and Wyoming through its US subsidiary Cameco Resources Inc. Cameco Resources was formed in 2007 through a restructuring of two wholly owned subsidiaries, Power Resources Inc. (Wyoming) and Crow Butte Resources, Inc. (Nebraska).
In the province of Ontario, Cameco operates a uranium refinery in Blind River and a uranium conversion facility in Port Hope, which has faced opposition from some community groups. [13] [14] Cameco is the exclusive fuel supplier to Bruce Power, which supplies 30% of Ontario's electricity through its nuclear generating plant. [15] It used to own part of Bruce Power, but it sold its interest in 2014. [16]
In 2004, Cameco spun off its gold mining operations in Kyrgyzstan, Mongolia and the USA to a newly formed public company, Centerra Gold. Cameco divested its remaining interest in Centerra on December 30, 2009. [17]
In January 2011, Cameco participated in the clean up of a ship-board uranium concentrate spill on the MCP Altona that had occurred on December 23, 2010. [18]
Mines | |
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Producing | |
Name | Location |
Smith Ranch-Highland | Wyoming, United States |
Cigar Lake | Saskatchewan, Canada |
Crow Butte | Nebraska, United States |
Inkai | Kazakhstan |
McArthur River | Saskatchewan, Canada |
Suspended | |
Eagle Point (Rabbit Lake) | Saskatchewan, Canada |
Mills | |
---|---|
Name | Location |
Key Lake | Saskatchewan, Canada |
Rabbit Lake | Saskatchewan, Canada |
Fuel Production | |
---|---|
Name | Location |
Port Hope conversion facility | Ontario, Canada |
Blind River refinery | Ontario, Canada |
The Canadian Revenue Agency (CRA) claimed Cameco's tax scheme started in 1999. Cameco created a marketing subsidiary in Zug, Switzerland, and drafted a 17-year agreement to supply uranium to the Swiss subsidiary at a rate of $10 a pound. The corporate tax rate in Switzerland is estimated to be at around 10 per cent. The Canadian corporate rate estimated to be at least 27 per cent. [19] By having the Swiss subsidiary purchase the uranium first, and then selling it elsewhere, Cameco was able to pay the Canadian tax rate for the first $10 and the remainder at the Swiss tax rate.
In 2012, the Canadian research firm Veritas Investment Research estimated that Cameco paid $36 million in cash taxes on $680 million pre-tax cash flow from operations, or at a rate of 5 per cent. During the previous six-year period, the Swiss subsidiary claimed $4.3 billion in profits, while its Canadian operation claimed a loss of $1.3 billion. Cameco had also established another subsidiary in Barbados, a known tax haven. The operations conducted in this subsidiary were not clear, but court documents showed Cameco paid the Barbados subsidiary 50 per cent of its Swiss subsidiary's pre-tax profits in 2005. [20]
The CRA claimed that the Swiss subsidiary profits had to be taxed at Canadian rates, because these subsidiaries did not carry out any real business activities and were just paper companies. It wanted Cameco to pay $2.1 billion in back taxes. Cameco argued that its offshore structures were legitimate and permitted by Canadian tax laws. [20]
In 2018, a judge from the Tax Court of Canada, as well 3 judges from the Federal Court of Appeal ruled in Cameco's favour and found the manner it acted in to be lawful. [21] [22] The Tax Court also awarded the company with $10.25 million in legal fees and up to $17.9 million in disbursements for costs incurred. The CRA looked for a final appeal from the Supreme Court of Canada, but on February 18, 2021, the Court declined to hear the appeal. [23] The lower courts' rulings thus were rendered final, leaving the CRA with no further means to pursue this case.
Westinghouse Electric Company LLC is an American nuclear power company formed in 1999 from the nuclear power division of the original Westinghouse Electric Corporation. It offers nuclear products and services to utilities internationally, including nuclear fuel, service and maintenance, instrumentation, control and design of nuclear power plants. Westinghouse's world headquarters are located in the Pittsburgh suburb of Cranberry Township, Pennsylvania.
Eldorado Resources was a Canadian mining company active between 1926 and 1988. The company was originally established by brothers Charles and Gilbert LaBine as a gold mining enterprise in 1926, but transitioned to focus on radium in the 1930s and uranium beginning in the 1940s. The company was nationalized into a Crown corporation in 1943 when the Canadian federal government purchased share control. Eldorado Resources was merged with the Saskatchewan Mining Development Corporation in 1988 and the resulting entity was privatized as Cameco Corporation. The remediation of some mining sites and low-level nuclear waste continue to be overseen by the Government of Canada through Canada Eldor Inc., a subsidiary of the Canada Development Investment Corporation.
Molecular laser isotope separation (MLIS) is a method of isotope separation, where specially tuned lasers are used to separate isotopes of uranium using selective ionization of hyperfine transitions of uranium hexafluoride molecules. It is similar to AVLIS. Its main advantage over AVLIS is low energy consumption and use of uranium hexafluoride instead of vaporized uranium. MLIS was conceived in 1971 at the Los Alamos National Laboratory.
Nuclear power in Canada is provided by 19 commercial reactors with a net capacity of 13.5 gigawatt (GW), producing a total of 95.6 terawatt-hours (TWh) of electricity, which accounted for 16.6% of the country's total electric energy generation in 2015. All but one of these reactors are located in Ontario, where they produced 61% of the province's electricity in 2019. Seven smaller reactors are used for research and to produce radiopharmaceuticals for use in nuclear medicine.
The uranium market, like all commodity markets, has a history of volatility, moving with the standard forces of supply and demand as well as geopolitical pressures. It has also evolved particularities of its own in response to the unique nature and use of uranium.
Gerald W. (Jerry) Grandey is a Canadian executive who was previously the President and Chief Executive Officer of Cameco Corporation, one of the world's largest uranium producers. He joined Cameco in 1993 as Senior Vice President, and was appointed President in 2000 and CEO in 2003. In 2010, The Harvard Business Review recognized him as being one of the top 100 CEOs in the world because of the value created for shareholders during his tenure. Grandey retired from Cameco in 2011.
Separation of isotopes by laser excitation (SILEX) is a process for enriching uranium to fuel nuclear reactors that may also present a growing nuclear weapons proliferation risk. It is strongly suspected that SILEX utilizes laser condensation repression to excite a vibrational mode of the uranium-235 isotope in uranium hexaflouride (UF6), allowing this lighter molecule to move more rapidly to the outer rim of a gaseous jet and resist condensing compared to the heavier, unexcited 238UF6. This differs greatly from previous methods of laser enrichment explored for their commercial prospects: one using atomic uranium (Atomic Vapor Laser Isotope Separation (AVLIS)) and another molecular method that uses lasers to dissociate a fluorine atom from 235UF6 (Molecular Laser Isotope Separation (MLIS)), allowing the enriched product to precipitate out as a solid.
Uranium mining is the process of extraction of uranium ore from the ground. Over 50,000 tons of uranium were produced in 2019. Kazakhstan, Canada, and Australia were the top three uranium producers, respectively, and together account for 68% of world production. Other countries producing more than 1,000 tons per year included Namibia, Niger, Russia, Uzbekistan and China. Nearly all of the world's mined uranium is used to power nuclear power plants. Historically uranium was also used in applications such as uranium glass or ferrouranium but those applications have declined due to the radioactivity and toxicity of uranium and are nowadays mostly supplied with a plentiful cheap supply of depleted uranium which is also used in uranium ammunition. In addition to being cheaper, depleted uranium is also less radioactive due to a lower content of short-lived 234
U and 235
U than natural uranium.
The McArthur River Uranium Mine, in northern Saskatchewan, Canada, is the world's largest high-grade uranium deposit.
The Key Lake mine is a former uranium mine in Saskatchewan, Canada. It is 570 kilometres (350 mi) north of Saskatoon by air on the southern rim of the uranium-rich Athabasca Basin. Key Lake was initially developed to open-pit mine two nearby uranium ore deposits: the Gaertner deposit and the Deilmann deposit. Mining of this ore ceased in the late 1990s; the Key Lake mill now processes uranium ore from the McArthur River mine and from existing stockpiles on site. High-grade ore from McArthur river is blended with lower grade local rock before being passed through the mill. The mill has a permitted annual production capacity of 25 million pounds of U3O8. In addition, ammonium sulfate fertilizer is produced as a byproduct from used reagents. The pits of the mined out local deposits are being used as mill tailings management facilities.
Denison Mines Corp. is a Canadian uranium exploration, development, and production company. Founded by Stephen B. Roman, and best known for its uranium mining in Blind River and Elliot Lake, it later diversified into coal, potash, and other projects.
Paladin Energy Ltd is a Western Australian based uranium production company.
Centerra Gold Inc. is a Canadian mining company that owns and operates the Mount Milligan copper-gold mine in British Columbia, Canada, and the Öksüt gold mine in Turkey. Through its Thompson Creek Metals subsidiary company, it also owns the Endako and Thompson Creek molybdenum mines in British Columbia and Idaho, respectively, though they have been inactive since Centerra's acquisition. The company formerly owned and operated the Kumtor Gold Mine in the Kyrgyz Republic and the Boroo Gold Mine in Mongolia. Headquartered in Toronto, Centerra Gold is a public company with shares traded on the Toronto Stock Exchange and New York Stock Exchange.
Uranium mining in Wyoming was formerly a much larger industry than it is today. Wyoming once had many operating uranium mines, and still has the largest known uranium ore reserves of any state in the U.S. At the end of 2008, the state had estimated reserves dependent on price: 539 million pounds of uranium oxide at $50 per pound, and 1,227 million pounds at $100 per pound.
The Cigar Lake Mine is a large high-grade underground uranium mine, located in the uranium-rich Athabasca Basin of northern Saskatchewan, Canada, at the south-west corner of Waterbury Lake. The deposit, discovered in 1981, is second in size of high-grade deposits only to the nearby McArthur River mine. Other deposits, such as the Olympic Dam mine in Australia, contain more uranium but at lower grades.
Crow Butte is a uranium mining operation located four miles (6 km) southeast of the city of Crawford in Dawes County, Nebraska, United States. Cameco Corporation owns and operates Crow Butte through its wholly owned subsidiary, Crow Butte Resources, Inc.
Ahtium was a Finnish mining company that operated the Talvivaara nickel mine from the company's establishment in 2004 until the mining business was sold to the state-owned Terrafame in 2015.
Canada is the world's second-largest producer of uranium, behind Kazakhstan. In 2009, 20% of the world's primary uranium production came from mines in Canada. 14.5% of the world production came from one mine, McArthur River. Currently, the only producing area in Canada is northern Saskatchewan, although other areas have had active mines in the past.
The Beaverlodge Mine sometimes referred to as the Eldorado Mine or the Beaverlodge Operation was a uranium mine in the community of Eldorado, northern Saskatchewan, Canada. Eldorado was a small community 7 kilometres (4.3 mi) east of the community of Uranium City, Saskatchewan in the Beaverlodge Uranium District built by Eldorado Mining and Refining Limited to house the workforce and families of the mine.
The Kintyre uranium project is located 60 km south of the Telfer gold mine and 260 km northeast of Newman at the western edge of the Great Sandy Desert in the East Pilbara region of Western Australia.