A Japanese power company is trying to get out of its contract with Cameco, but the Saskatoon-based mining company is saying no.
Cameco hasn’t accepted a Japanese power company’s move to terminate their mutual contract, and says it will pursue all its legal rights and remedies.
TEPCO says they have had to cut the contract because of a ‘force majeure’, which is a natural and unavoidable catastrophe.
President and CEO of Cameco, Tim Gitzel says they have worked with Tokyo Electric Power Company Holdings to restructure the contract since the Fukushima nuclear accident in 2011 initiated by a tsunami .
Gitzel says other Japanese utilities have restarted their plants and he believes this move is because TEPCO doesn’t like the terms of the contract and wants a different deal.
TEPCO has already received and paid for 2.2 million pounds of uranium since 2014, so the remainder of the contract which includes deliveries through 2028 which total about $1.3 billion in revenue.
Gitzel says Cameco has sufficient financial capacity to manage any loss of revenue as a result of the dispute, but he is confident they will recover all the value but it will take time.