Saturday, July 12, 2008

Cameco buys Australian uranium stake, in spite of moratorium

In one of its largest deals yet, Cameco Corp. is buying a 70-per-cent interest in the Kintyre uranium deposit in Western Australia from Rio Tinto PLC for $346.5-million (U.S.).

There's only one problem: The state government has long prohibited the development of new uranium mines in Western Australia, including Kintyre.

Cameco chief executive officer Jerry Grandey is confident, however, that the moratorium on the mining of new deposits of uranium, which is used to make fuel for nuclear reactors, will eventually be lifted.

In an interview, he said nuclear energy's potential role as a way to reduce greenhouse gas emissions, is softening political opposition to uranium mining and nuclear power.

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