Cameco and Orano have reached an agreement to acquire Tokyo Electric Power Company Holdings’ remaining interest in the Cigar Lake uranium mine, a move that will give the two companies full ownership of one of the world’s highest-grade uranium operations.
The transaction involves the purchase of Tepco Resources Inc.’s 5% participating interest in the Cigar Lake Joint Venture in northern Saskatchewan, Canada. Once the deal is completed, Cameco’s ownership stake will increase to 57.418%, while Orano’s share will rise to 42.582%.
The companies announced that the acquisition remains subject to regulatory approvals and standard closing conditions. They expect the transaction to be finalized during the third quarter of 2026.
Under the agreement, Cameco will pay approximately CAD115.75 million for its share of the acquisition, subject to customary closing adjustments. Financial details related to Orano’s portion were not disclosed in the announcement.
The latest deal follows an earlier ownership consolidation completed in 2022. At that time, Cameco and Orano agreed to purchase the 7.875% stake previously held by Idemitsu Canada Resources Ltd.
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Cigar Lake Strengthens Uranium Supply
The acquisition highlights the growing strategic importance of uranium assets as countries worldwide expand their nuclear energy programs. Reliable uranium supply has become important as governments seek low-carbon electricity sources and greater energy security.
Cameco President and Chief Executive Officer Tim Gitzel described Cigar Lake as one of the world’s leading uranium mines. He said increasing ownership in the operation aligns with the company’s long-term strategy of investing in scarce, licensed, and permitted assets that support future nuclear energy growth.
Orano Canada President and CEO Pascal Bastien said the investment reflects the company’s confidence in Saskatchewan and its long-term role in the global nuclear fuel industry. He also emphasized the company’s commitment to maintaining safe and reliable operations while supporting employees and local communities.
World’s Highest-Grade Uranium Mine
Cigar Lake is widely recognized as the highest-grade uranium mine currently in operation. The mine contains ore averaging 16.33% U3O8, making it significantly richer than many uranium deposits elsewhere in the world.
Mining at Cigar Lake presents unique engineering challenges. The uranium deposit lies about 480 meters underground within soft sandstone rock formations that are difficult to mine using conventional methods.
To overcome these conditions, Cameco developed a specialized jet-boring mining system. The process begins by freezing the surrounding ground to create a stable working environment.
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High-pressure water jets are then used to carve out cavities in the frozen ore body. The resulting mixture of water and uranium ore is collected and pumped through underground processing systems.
After initial processing, the thickened ore slurry is transported to the surface. Tanker trucks then carry the material approximately 70 kilometers to the McClean Lake mill, which is operated by Orano.
At the mill, the uranium-bearing material is processed into uranium concentrate, commonly known as yellowcake. This product becomes a key raw material for nuclear fuel production.
Cigar Lake remains one of the most valuable uranium assets in the world because of its substantial remaining reserves. As of December 31, 2025, the mine held proven and probable reserves of approximately 172.4 million pounds of U3O8, equivalent to more than 66,000 tonnes of uranium.
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The operation also contained measured and indicated resources of around 26.3 million pounds and inferred resources of about 20 million pounds. These figures provide a strong foundation for future production.
Commercial production at Cigar Lake began in 2014. By the end of 2025, the mine had produced roughly 174.5 million pounds of packaged uranium concentrate on a 100% ownership basis.
For 2026, Cameco expects the mine to produce between 17.5 million and 18 million pounds of U3O8. The company plans to continue mining in the current production zones while advancing development of the Cigar Lake extension project.
The extension program is designed to support operations through 2036. Planned investments include new freeze pads, expanded freezing infrastructure, and additional underground facilities required for future mining activities.
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The full ownership structure created by this acquisition gives Cameco and Orano greater control over one of the world’s most important uranium assets. Cigar Lake is expected to remain a major source of fuel for reactors and a key contributor to the long-term uranium supply chain.
