The HEU agreement expires on December 31 2013. As a reminder, the agreement (aka the Megatons to Megawatts agreement) has been responsible for 24m lbs per year of uranium supply to the US – the world’s largest user of uranium fuel for its huge fleet of reactors.
Despite this very well-publicized fact, there are still some elements of the investment community that have continued to believe that that Russia would continue to deliver uranium next year and beyond the end of this year.
In a recent presentation to the annual convention of the Prospectors and Developers Association of Canada in Toronto, Tim Gabruch of Cameco responded to a question on the subject by pointing out that while Russia has committed to continue to sell the enrichment component, equivalent to that in the HEU, Russia has said that it needs the uranium itself.
No HEU agreement means removing 24m lbs of annual uranium supply at a time when, if you’ve been following my blog recently, you know that demand is increasing….
