Business

Cameco buys into Bruce Nuclear

Cameco, the world's largest supplier of uranium, is buying a 15 per cent stake of the Bruce nuclear power development in southern Ontario.

The Saskatoon company is acquiring the stake from British Energy PLC. The memorandum of understanding was announced Thursday.

"This arrangement is an ideal fit with Cameco's strategy to grow profitably in the nuclear industry," CEO Bernard Michel said in a statement.

Earlier this year, British Energy struck a deal to lease and operate the Bruce plants from Ontario Power Generation (formerly Ontario Hydro) through 2018.

Cameco says it will invest $100 million over two years, giving the company full responsibility for supplying fuel to power the reactors.

The Bruce develpment comprises eight Candu ractions, four of which are out of service.

Cameco will also pay $42 million for Ontario Power's fuel inventory. The agreement also calls upon the company to "provide certain financial guarantees".

Two unions at the Bruce, the Power Workers Union and the Society of Energy Professionals, have been asked to take a five per cent stake in Bruce Power.

"Together with (British Energy) and the unions, we will deliver ...clean, reliable and competitively priced electricity," Michel said.

now