Cameco Corp. is ending its toll conversion agreement at the end of August 2014 with Springfields Fuels in the United Kingdom. The original 10-year deal was to expire in 2016. The company has agreed to pay $18 million to allow it to terminate the agreement ahead of schedule.
Cameco has been shipping uranium trioxide from its Blind River refinery to Springfields where it is converted to uranium hexafluoride that is needed to produce fuel for light water reactors. Cameco then delivers the hexafluoride to its customers around the world.
Cameco blames a weak market for uranium hexafluoride for its decision. The company will supply its customers from its Port Hope conversion facility.
Roughly 15% of the world’s uranium production comes from Cameco mines in Canada, the United States and Kazakhstan.