Cameco becomes selling agent for all Global Laser Enrichment output

Silex Systems announced last week that Cameco Corp. and Global Laser Enrichment-a joint venture that is 51 percent owned by Silex and 49 percent owned by Cameco-have finalized an offtake agreement that essentially makes Cameco the selling agent for all GLE nuclear products.

Specifically, the agreement calls for Cameco to be the exclusive buyer and seller of all uranium products from GLE's planned Paducah Laser Enrichment Facility (PLEF) in McCracken County, Ky.

The PLEF is expected to begin operations by 2030, subject to government support, favorable market and industry conditions, and a positive feasibility assessment and final investment decision. If it goes forward, the facility could produce uranium in several forms, beginning with natural-grade uranium hexafluoride (UF₆).

Series of positive developments: The offtake agreement is the latest development that advances the GLE facility. In March, the governments of Kentucky and McCracken County granted preliminary approval for an incentive package designed to support development. The performance-based incentive package would provide as much as $98.9 million in tax incentives and other economic incentives, provided that GLE reaches required thresholds in investments and job creation.

Also in March, the Nuclear Regulatory Commission, in cooperation with the U.S. Army Corps of Engineers, completed a draft environmental impact statement in response to GLE's application to construct and operate the PLEF.

Cameco increased its interest in GLE from 29 percent to 49 percent in 2021, with an option to attain a majority interest in GLE of as much as 75 percent. That increased interest stemmed from GLE's agreement with the Department of Energy regarding the re-enrichment of depleted uranium tails left over as byproducts from past enrichment technologies.

A home for all GLE nuclear products: Silex CEO Michael Goldsworthy said that his company is "delighted" with the new offtake agreement between Cameco and GLE, because it "provides a home for all of GLE's future nuclear products, including natural UF₆ and enriched uranium products to help fuel the world's rapidly growing nuclear reactor fleet. The agreement will guarantee GLE receives pricing for its products equivalent to Cameco's average realized price, net of appropriate selling costs, achieved on an annual basis across its long-term contacting portfolio, and without the significant cost of GLE establishing its own sales and marketing resources."

He added that "the agreement with Cameco also provides a key commercial pillar to support a future final investment decision for the PLEF."

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