NEWS
02/01/2017 03:22 EST | Updated 02/02/2018 00:12 EST

Cameco at risk of losing multi-year contract to supply uranium to Tokyo Electric

SASKATOON — Canada's largest uranium company says Tokyo Electric Power Co. is seeking to terminate a multi-year supply contract that would be worth about $1.3 billion of revenue through 2028.

Cameco (TSX:CCO) says the Japanese power company has cited forces beyond its control — specifically government regulations arising from the 2011 Fukushima nuclear accident — that have prevented the operation of TEPCO's nuclear plants.

It says TEPCO has refused to accept a uranium delivery scheduled for today.

Cameco insists in today's statement that there's no basis for terminating the contract.

A termination would affect about 9.3 million pounds of uranium supplied by Cameco through 2028, including about 855,000 pounds annually in 2017, 2018 and 2019.

Cameco estimates the revenue at risk this year is $126 million, out of between $2.1 billion and $2.2 billion from all sources including TEPCO.