Cameco urges long-term nuclear energy focus as global trade uncertainty worsens

Leading global uranium fuel provider Cameco has told investors that the industry must focus on a long-term strategy in the face of current global trade uncertainty.

Announcing the company’s latest quarterly results, chief executive officer Tim Gitzel highlighted the importance of the nuclear fuel cycle and the potential for expanding nuclear energy.

However, he added that ongoing uncertainty driven by global trade policies and unclear market access means the industry must adapt procurement plans under the threat of tariffs.

Trade uncertainty

“With the continued uncertainty driven by global trade policies and unclear market access, fuel buyers have remained focused on adapting procurement plans under the threat of tariffs and securing downstream conversion and enrichment services before buying the natural uranium,” Mr Gitzel told a global webinar audience.

“Looking ahead, we believe a move upstream to focus on security of uranium supply is inevitable and unavoidable.”

Mr Gitzel said it was particularly important in the current market that buyers and sellers secure long-term uranium contracts to support mining economics and investments in new projects.

He also highlighted the ongoing challenges of sulphuric acid availability and the importance of maintaining a strong supply chain.

Number of positives

However, while trade issues and acid supplies continue to raise concerns, Mr Gitzel noted that there were a number of positives driving global growth.

“We’ve recently seen the World Bank announce plans to lift its decades-old ban on funding nuclear projects and we’ve had more announcements of reactor operating licences being extended in the US, pushing some reactor lives to 80 years.”

Mr Gitzel highlighted the importance of China – which this week announced 10 new reactor builds for the fourth consecutive year – in the nuclear energy market and the potential for increased collaboration.

Furthermore, he emphasised the importance of exploration in his own company’s strategy and its continued efforts to secure high-quality properties in the Athabasca Basin.