Canadian firm Cameco (CCJ.US) has signed a uranium supply agreement valued at 2.6 billion Canadian dollars ($1.9 billion) with India. The deal was announced on Monday during Canadian Prime Minister Mark Carney's inaugural official visit to the country. According to a statement released by Carney's office, Cameco will supply 22 million pounds (11,000 tonnes) of reactor fuel to India between 2027 and 2035. The two nations also agreed to enhance cooperation in sectors including liquefied natural gas, critical minerals, solar power, and hydrogen energy.
This agreement signifies a renewal of bilateral relations, which had deteriorated in 2023 after Canada alleged that individuals linked to the Indian government were involved in violent activities against Canadian citizens, including the killing of a Sikh activist. The deal with Cameco comes less than two months after India ended its state monopoly on nuclear power and eased controversial liability rules to attract private investment. This market liberalization is part of India's effort to increase its nuclear power capacity to 100 GW by 2047, a goal that will create a growing uranium market that cannot be met by domestic resources alone.
Nuclear cooperation between the two countries dates back to the 1950s, though India faced decades of nuclear isolation following its first nuclear test in 1974. A 2008 agreement with the United States helped the South Asian nation regain access to global reactor fuel and technology. India and Canada had previously signed a nuclear cooperation agreement in 2010, which paved the way for a uranium supply deal with Saskatchewan-based Cameco in 2015, though that agreement has now expired. In March of last year, India's Atomic Energy Minister Jitendra Singh informed parliament that New Delhi currently holds uranium import contracts with Uzbekistan.
India's installed nuclear power capacity stands at 8.8 GW, accounting for less than 2% of its total power capacity. Carney's office also stated that Canada and India will sign a new Comprehensive Economic Partnership Agreement this year, advancing Canada's goal of doubling bilateral trade with India by 2030. Additionally, the two nations agreed to expand cooperation in space and signed a preliminary agreement to collaborate on the development and deployment of artificial intelligence under the Australia-Canada-India Technology and Innovation Partnership framework. Indian software giant HCL Technologies Ltd. plans to expand its operations in North America, with its workforce in the region expected to grow by 75% by 2030.
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