More North American supply contracts for UrAsia
UrAsia Energy has entered into a five-year uranium supply agreement with US utility Exelon. The company also announced the execution of an eight-year supply agreement with another unnamed North American utility.
Under the agreement with Exelon, UrAsia will supply some 2.5 million pounds U3O8 (1130 tonnes U3O8) for delivery between 2009 and 2013. Exelon currently operates 17 nuclear power reactors at ten US sites.
The company also announced the execution of an eight-year contract for the sale of more than 3 million pounds U3O8 (1360 tonnes U3O8) at "market related prices" to an undisclosed North American utility. UrAsia then quoted a Trade Tech Weekly Spot Price for 9 March which put uranium at$90 per poound U3O8.
For both contracts, uranium will be supplied from the Akdala and South Inkai in-situ leach (ISL) mines in Kazakhstan. UrAsia holds a 70% interest in the Betpak Dala Joint Venture, which has a 100% interest in the Akdala uranium mine and a 100% interest in the South Inkai uranium development project. The balance of the interest in the Betpak Dala JV is owned by KazAtomProm, the Kazakh state uranium company.
In January, UrAsia announced that it had entered into an agreement to supply a major North American utility with uranium. The contract was for the sale of some 4 million pounds U3O8 for delivery over a five-year period, with quantities ranging from 250,000 to 1 million pounds U3O8 (115 to 455 tonnes U3O8) per year. The financial terms of the contract were not disclosed, but the contract included market-related pricing terms with floor price protection.
Phillip Shirvington, President and CEO of UrAsia, said, "As a uranium producer in a resurgent nuclear sector, UrAsia is pleased to be able to supply the fuel needs for a number of nuclear utilities in North America, including one of the largest of such utilities, Exelon."
Further information
WNA's Supply of Uranium information paper
WNA's Uranium and Nuclear Power in Kazakhstan information paper
