Cameco soars on $80 billion US nuclear pact

Cameco (TSX: CCO) (NYSE: CCJ) surged on Tuesday after the US government announced a strategic partnership with Westinghouse Electric Company, which it co-owns with Brookfield Asset Management, to accelerate the development of America’s nuclear power.Washington envisions that at least $80 billion of new nuclear reactors will be constructed across the country, using Westinghouse nuclear reactor technology. Once constructed, the reactors are expected to generate reliable and secure power, including for significant data center and compute capacity that will drive America’s growth in artificial intelligence.The move, the companies say, aligns with US President Donald Trump’s executive order signed in May aimed at advancing the nation’s nuclear technology development, which he sees as vital to its energy security and AI ambitions.Cameco’s US-listed shares jumped more than 20% to an all-time high of $104.75 apiece on the news, taking the Canadian uranium producer’s market capitalization to $45.3 billion. Brookfield Asset Management also inched higher, rising 2.2% with a market capitalization of $91.2 billion.Nuclear renaissanceBloombergNEF estimates that power consumption from US data centers is expected to double by 2035, reaching almost 9% of total demand. The anticipated demand has created a nationwide rush to build new infrastructure, with nuclear reactors being at the forefront of this energy revolution.Secretary of Commerce Howard Lutnick said the $80 billion pact with Westinghouse “embodies the bold vision of President Trump – to rebuild our energy sovereignty, create high-paying jobs and drive America to the forefront of the nuclear renaissance.”“Our administration is focused on ensuring the rapid development, deployment and use of advanced nuclear technologies,” he stressed.The agreement comes against the backdrop of a sluggish nuclear buildout in the US — only three reactors have been completed this century.AP1000 reactorsUnder the partnership, Westinghouse will deploy its AP1000 reactor, which it hails as the most advanced commercially available, with fully passive safety systems, modular construction design and the smallest footprint per MWe on the market.Each two-unit AP1000 site would create or sustain 45,000 manufacturing and engineering jobs in 43 states, and a national deployment will create more than 100,000 construction jobs, the companies said.Currently, there are six AP1000 reactors setting operational performance and availability records worldwide with 14 additional reactors under construction and five more under contract, they added. To date, the AP1000 technology has been selected for nuclear energy programs in Poland, Ukraine and Bulgaria.“This partnership with the US government will help unlock the potential that Westinghouse and nuclear energy can play to accelerate the growth of artificial intelligence in the United States, while meeting growing electricity demand and energy security needs at scale,” Connor Teskey, president of Brookfield Asset Management, stated in a press release.“We expect this new partnership to support the global growth opportunities for both Westinghouse’s and Cameco’s nuclear products, services and technologies, adding significant long-term value for our stakeholders and enhancing energy, national and climate security around the world,” added Cameco CEO Tim Gitzel.Cameco and Brookfield formed a strategic partnership to acquire Westinghouse in October 2022. The partnership brought together Cameco’s expertise in the nuclear industry with Brookfield’s recognized position as one of the world’s largest investors in energy generation technologies.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com