the worlds largest uranium producer gets on , page-2

I like the paragraph from the VP of GHE..... A huge wrap.



GE Hitachi's Nuclear Effort Inks Pact With Cameco
20 Jun 08 11:54
By Bob Sechler
Of DOW JONES NEWSWIRES


General Electric Co.'s (GE) effort to produce and sell fuel used in nuclear reactors received a boost Friday, when its nuclear energy joint venture announced a deal with uranium miner Cameco Corp. (CCJ).

Under the agreement, Cameco will help GE Hitachi Nuclear Energy commercialize a uranium enrichment technology it has been developing. GE Hitachi is a partnership between GE and Hitachi Ltd. (6501.TO).

Cameco, a top uranium miner, is paying $123.8 million for a 24% stake in a GE Hitachi subsidiary that is developing the enrichment technology.

Separately, Cameco also may supply uranium to the unit, enabling GE Hitachi to serve as something of a one-stop shop for nuclear power plants. Currently, utilities with nuclear reactors generally buy their own uranium and then contract for enrichment and processing services.

The deal with Cameco, of Canada, "does offer the opportunity to provide (both) uranium and enrichment to customers," said Lisa Price, GE Hitachi senior vice president for the nuclear fuel cycle. "But we don't anticipate needing to have a front-end supply (of uranium) on a regular basis" because many utilities already have their own supplies.

Still, Price called the Cameco deal a major step forward for GE Hitachi in terms of the endorsement it represents for the enrichment technology. GE Hitachi has been developing a laser enrichment technology licensed from Australian company Silex Systems Ltd. (SLX.AU), which it hopes can reduce waste and energy costs.

In Cameco, "we now have another leader in the uranium space to effectively endorse what we're doing," Price said.

Cameco Chief Executive Jerry Grandey concurred, noting in a prepared statement that the deal indicates "three leaders in the nuclear industry support the development of the next generation of uranium enrichment technology."

A test loop to demonstrate the commercial feasibility of the technology is being built at GE Hitachi's headquarters in Wilmington, N.C., and is expected to be finished late this year.

Price said a decision on whether to go ahead with a full-scale commercial facility could be made as early as the beginning of 2009, with a start-up date of 2012. The commercial facility also would be built in Wilmington.

If successful, the technology will give GE Hitachi an end-to-end product offering in the resurgent nuclear energy sector. GE Hitachi already makes and sells nuclear reactors and equipment.

-By Bob Sechler; Dow Jones Newswires; 512-236-9637


(END) Dow Jones Newswires

06-20-08 1154ET