Canada Close to Finalise Uranium Deal Worth $2.8 Billion: Report

India and Canada are working on a uranium supply deal estimated at $2.8 billion over 10 years, as reported by The Globe and Mail. The fuel is expected to be supplied by Cameco Corp, Canada’s main uranium producer. As per the report, some terms are still being worked on and could change before the official announcement. 

Talks Resume After Diplomatic Strain 

The progress comes days after Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney in Johannesburg during the G20 Summit. This follows a period of strained ties in 2023. Dialogue between the 2 countries has gradually restarted since then. 

Earlier Supply Agreement and Safeguards 

India last signed a uranium supply deal with Cameco in 2015, a 5-year agreement valued at around $350 million based on market prices at that time. According to the news report, the new deal would be a separate arrangement, not a renewal.  

Civil nuclear cooperation only resumed after a pact came into force in 2013, requiring any nuclear material exchanged between the 2 countries to be used only for peaceful purposes and monitored under IAEA safeguards. 

India’s Reactor Requirements 

India currently operates around 25 nuclear reactors and is building 6 more, according to the World Nuclear Association. Several of its reactors use designs linked to Canada’s Candu heavy-water technology, bringing out nuclear cooperation from earlier decades. Reports also mentioned the possibility of further discussions on small modular reactors being developed in Canada, though no agreement has been announced. 

Trade Negotiations Restart Alongside Nuclear Talks 

During the same meeting in Johannesburg, India and Canada agreed to restart negotiations on a Comprehensive Economic Partnership Agreement (CEPA). A statement from India’s Prime Minister’s Office said the aim is to increase bilateral trade to $50 billion by 2030. Both sides also discussed areas such as technology, space, education, defence, and supply chains. 

Read More:  India’s Forex Framework May Be Reclassified Soon by IMF! 

Conclusion 

If finalised, the uranium deal would take place alongside renewed trade negotiations and a gradual return to normal engagement between India and Canada. 

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