Cameco Inks $1.9B Long-Term Uranium Supply Deal With India

Cameco Corporation CCJ has strengthened its long-term growth visibility with a fresh supply agreement with India’s Department of Atomic Energy, underscoring its role as a key player in the global nuclear fuel supply chain. The contract involves the delivery of nearly 22 million pounds of uranium ore concentrate over a nine-year period beginning in 2027.

The deal is currently estimated at about CAD 2.6 billion ($1.9 billion) based on market-related pricing. This follows Cameco’s previous five-year uranium supply agreement to India that started in 2015.

India’s Nuclear Push Creates Demand For CCJ & Peers

India currently operates 24 nuclear reactors with a capacity of 7,943 MW and has six additional reactors under construction that are expected to add 4,768 MW. Historically constrained by trade restrictions and limited domestic uranium resources, the country has developed an indigenous nuclear program centered on a fuel cycle designed to leverage its large thorium reserves.

With a population of more than 1.4 billion and energy consumption projected to expand faster than any other major nation over the next decade, India is increasingly relying on nuclear power as a stable, low-carbon energy source. 

The country has set a target of reaching 100 GW of nuclear capacity by 2047 as part of its energy security and decarbonization push.  To support the major expansion of India’s nuclear fleet, legislative changes were made in December 2025 to open the nuclear sector to private investment and easing nuclear liability provisions that had previously constrained new build activity. 

For Cameco, the agreement also reflects a global trend of sovereign buyers locking in uranium supplies from multiple sources amid tightening availability and surging demand. The company’s track record as a dependable producer continues to make it a preferred partner for utilities and governments seeking a secure fuel supply. 

Notably, the volumes tied to the India contract are already factored into Cameco’s long-term contracting portfolio and price sensitivity outlook disclosed in its 2025 annual filings. Per the last update, Cameco had stated that it has executed agreements to sell about 230 million pounds of uranium to 39 customers globally. It also has 83 million kilograms of UF6 conversion services across 33 customers. The company’s diversified customer base spans utilities in 16 countries, reinforcing its status as a cornerstone supplier in the nuclear fuel market.

Cameco’s competitive strength is anchored in its ownership of some of the world’s largest high-grade uranium reserves and low-cost operations. Canada-based Cameco holds a 69.805% stake in McArthur River and 83.33% ownership in the Key Lake mill. McArthur River is the world’s largest, high-grade uranium mine, and Key Lake is the world’s largest uranium mill.  CCJ has 54.547% stake in Cigar Lake, which is the world’s highest-grade uranium mine. The company is also strategically positioned across the nuclear fuel cycle through investments in Westinghouse Electric Company and Global Laser Enrichment.

The deal comes at a time when competition among uranium producers is intensifying. Peers such as Energy Fuels Inc. UUUU, NexGen Energy (NXE and Uranium Energy UEC are positioning to capitalize on the same structural demand upswing driven by global decarbonization and energy security concerns.
Energy Fuels remains a leading U.S. producer of uranium concentrate and is expanding into rare earths, heavy mineral sands, vanadium and medical isotopes. Energy Fuels operates several conventional and in-situ recovery uranium projects in the western United States. The company also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States.

NexGen Energy’s flagship Rook I Project consists of 32 contiguous mineral claims totaling an area of approximately 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The project is being developed into the largest source of low-cost uranium globally. It is expected to deliver up to 30 million pounds of high-grade uranium per year at the lowest quartile of the cost curve of C$13.86 over generations to come. This massive output could triple Canada’s uranium production, elevating NexGen Energy to a dominant position in the nuclear fuel market.

Uranium Energy is advancing the next generation of low-cost, environmentally friendly in-situ recovery (ISR) uranium mining projects in the United States and high-grade conventional projects in Canada. Uranium Energy has three ISR hub-and-spoke platforms in South Texas and Wyoming.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research