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[cdn-nucl-l] Bruce Energy + Cameco
Thursday October 12, 8:45 am Eastern Time
Cameco joins Br Energy Canada nuclear project
LONDON, Oct 12 (Reuters) - Cameco , the world's largest uranium supplier,
said on Thursday it would buy a 15 percent stake in British Energy Plc's
Bruce Power Partnership nuclear plant leasing project in Canada.
As part of the deal, the Saskatoon Saskatchewan-based group will also take
responsibility for managing the fuel needs of the eight Ontario Bruce
British Energy is partnership leader with an 80 percent stake under a lease
and operating agreement signed with the plant's owner, Ontario Power
Generation (OPG), in July.
It also hopes to sign up two Canadian power trade unions for a five percent
stake in the project, which forms part of Canada's power privatisation push.
Cameco will invest C$52 million (24 million pounds) up front and C$42
million for the fuel supply side.
British Energy said this would reduce its own upfront investment to C$286
million from C$380 million, while cost savings associated with Cameco's fuel
supply and management help would enhance investment returns.
The Bruce plants consist of eight Candu nuclear reactors, four of which are
operating (Bruce B - 3,140 megawatts), and four of which are currently out
of service (Bruce A - 3,076 megawatts).
Candu reactors are Canadian designed nuclear plant that have been built
around the world.
The term of the lease between Bruce Power and OPG is to run through to 2018,
with Bruce Power having an option to extend for another 25 years.
OPG retains contractual responsibility for nuclear used fuel and waste
management and decommissioning for the Bruce facilities.
The lease arrangement is due to become final in summer 2001.
Cameco said its investment was expected to have a positive impact on cash
flow from operations and significantly increase earnings after two years.
British Energy operates 15 reactors in the UK and is joint owner with PECO
Energy of AmerGen, which operates three nuclear power plants in the United