UPDATE: Cameco Up 1.5% Announces Agreement to Increase Inkai Production
Cameco (CCO.TO), a uranium producer, is up 1% after announcing it has signed a memorandum of agreement with its partner, Kazatomprom, to increase annual uranium production at Joint Venture Inkai Limited Liability Partnership (JVI) from 3.9 million pounds to 5.2 million pounds.
JVI owns and operates the Inkai in-situ recovery uranium mine and processing plant located in central Kazakhstan. JVI is owned by Cameco (60%) and Kazatomprom (40%), the Kazakhstan government owned national atomic company.
Under the memorandum of agreement, Cameco's share of Inkai's annual production will be 2.9 million pounds with the processing plant at full capacity. The company will also be entitled to receive profits on 3.0 million pounds.
"This agreement allows for increased production at Inkai to the designed capacity of 5.2 million pounds and advances us toward our goal of doubling annual production to 10.4 million pounds," Tim Gitzel, president and CEO of Cameco, said in a statement. "Clearly, Inkai will play a significant role in our plan to double uranium production to 40 million pounds by 2018."
To implement the increase, Cameco will need a binding agreement finalizing the terms of the memorandum, government approval and an amendment to the JVI resource use contract.
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