Cameco Corporation engages in the production of uranium worldwide. Segments The company operates through four segments: Uranium, Fuel Services, Nukem, and Electricity. Strategy The company’s strategy remains focused on taking advantage of the long-term growth it sees coming in its industry, while maintaining the ability to respond to market conditions as they evolve. Segments The company operates through four segments: Uranium, Fuel Services, Nukem, and Electricity. URANIUM This segment’s primary product includes uranium concentrates. This segment’s operating properties include McArthur River and Key Lake, Saskatchewan; Rabbit Lake, Saskatchewan; Smith Ranch-Highland, Wyoming; Crow Butte, Nebraska; and Inkai, Kazakhstan. This segment’s development project includes Cigar Lake, Saskatchewan. This segment’s projects under evaluation include Inkai blocks 1 and 2 production increase, Kazakhstan; Inkai block 3, Kazakhstan; Millennium, Saskatchewan; Yeelirrie, Australia; and Kintyre, Australia. This segment’s global exploration is focused on four continents; and approximately 2.0 million hectares of land. The company has approximately 443 million pounds proven and probable mineral reserves. McArthur River/Key Lake: McArthur River is a uranium mine. Key Lake is a uranium mill. McArthur River is one of the company’s three material uranium properties. The company has 69.805% interest in McArthur River and 83.33% interest in Key Lake projects. McArthur River property is located near Toby Lake in northern Saskatchewan. The mine site is approximately 1 square kilometer, not including the nearby airstrip and camp facilities. Key Lake mill is located in northern Saskatchewan, 570 kilometers north of Saskatoon. Rabbit Lake: The Rabbit Lake operation is an operating uranium production facility in North America and a uranium mill. The company owns 100% of Rabbit Lake. Smith Ranch-Highland: The company operates Smith Ranch and Highland as a combined operation. Each has its own processing facility, and the Smith Ranch central plant processes all the uranium and the Highland plant is idle. The company owns 100% of Smith-Ranch Highland through a wholly owned subsidiary. Crow Butte: Crow Butte is a uranium mine in Nebraska. The company owns 100% of Crow Butte through a wholly owned subsidiary. Inkai: Inkai is a uranium deposit located in Kazakhstan. There are two production areas (blocks 1 and 2) and an exploration area (block 3). The operator is Joint Venture Inkai Limited Liability Partnership, which the company jointly owns (60%) with Kazatomprom (40%). Inkai is one of the company’s three material uranium properties. The Inkai mine is located in the Suzak District of South Kazakhstan Oblast, Kazakhstan near the town of Taikonur, 370 kilometers north of the city of Shymkent and 125 kilometers east of the city of Kyzl-Orda. Cigar Lake: Cigar Lake is a uranium deposit. The company is a 50% owner and the mine operator. Cigar Lake uranium would be milled at McClean Lake. Cigar Lake is a material uranium property. Cigar Lake is located near Waterbury Lake approximately 660 kilometers north of Saskatoon. Kintyre: Kintyre is a uranium deposit. The company owns 70% and is the operator. FUEL SERVICES This segment operates as an integrated uranium fuel supplier offering refining, conversion, and fuel manufacturing services. This segment’s products include uranium trioxide (UO3); uranium hexafluoride (UF6) (control approximately 25% of world conversion capacity); uranium dioxide (UO2) (the world’s commercial supplier of natural UO2); and fuel bundles, reactor components, and monitoring equipment used by Candu reactors. This segment operates Blind River refinery, Ontario (refines uranium concentrates to UO3); Port Hope conversion facility, Ontario (converts UO3 to UF6 or UO2); Cameco Fuel Manufacturing Inc., Ontario (manufactures fuel bundles and reactor components); and a toll conversion agreement with Springfields Fuels Ltd., Lancashire, the United Kingdom (to convert UO3 to UF6) – expires in 2016. NUKEM This segment’s activities include physical trading of uranium concentrates, conversion, and enrichment services through back to back purchase and sales transactions; and recovery of natural and enriched non-standard uranium from western facilities and other sources. This segment’s major customers are commercial nuclear power plants using enriched uranium fuel, utilities that are either government-owned or large-scale utilities with multi-billion market capitalization and credit ratings. This segment also trades with converters, enrichers, other traders, and investors. ELECTRICITY This segment generates clean electricity through the company’s 31.6% interest in the Bruce Power Limited Partnership (BPLP), which operates four nuclear reactors at the Bruce B generating station in southern Ontario. The company has a capacity to generate 3,260 megawatts (100% basis) (approximately 15% of Ontario’s electricity). The company also has agreements to manage the procurement of fuel and fuel services for BPLP, including uranium concentrates, conversion services, and fuel fabrication services. Marketing The company sells uranium and fuel services (as uranium concentrates, UO2, UF6, conversion services, or fuel fabrication) to nuclear utilities in Belgium, Canada, China, Finland, France, Germany, Japan, South Korea, Spain, Sweden, Taiwan, United Kingdom and the United States. The company is the supplier of UO2 to CANDU reactors operated in Canada. Investment The company also has a 24% interest in Global Laser Enrichment (GLE) in North Carolina, with General Electric (51%) and Hitachi Ltd. (25%). GLE is testing a third-generation technology that would use lasers to commercially enrich uranium. History Cameco Corporation was founded in 1987. The company was incorporated under the Canada Business Corporations Act in 1987.
cameco corp (CCJ:New York)
2121-11th Street West
Saskatoon, SK S7M 1J3
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