View source for Company:Cameco

{{Short description|Canada uranium company}}
{{Infobox company
| name = Cameco Corporation
| former_name = Canadian Mining and Energy Corporation
| logo = Cameco Logo.svg
| logo_size = 150px
| image = Cameco2.jpg
| image_caption = Head office in Saskatoon, Canada
| type = [[Finance:Public company|Public]]
| traded_as = {{Unbulleted list|{{TSX|CCO}}|{{NYSE|CCJ}}|S&P/TSX 60 component}}
| predecessors = {{ubl|
 | Eldorado Resources
 | Saskatchewan Mining Development Corporation}}
| foundation = {{Start date and age|1988}}
| hq_location = Saskatoon, Saskatchewan, Canada
| key_people = Ian Bruce ([[Social:Chairman|Chairman]]) <br/> Tim Gitzel ([[Social:President (corporate title)|President]] & [[Company:CEO|CEO]])
| industry = Mining, [[Physics:Energy|energy]]
| products = [[Chemistry:Uranium|Uranium]], [[Physics:Electricity|electricity]]
| revenue = {{nowrap|{{loss}} {{CAD|1.475 billion|link=yes}} (2021)<ref>{{cite web |url=https://s3-us-west-2.amazonaws.com/assets-us-west-2/annual/cameco-2021-annual-report.pdf |title=Annual Report 2021 |access-date=2023-01-18 |page=32}}</ref>}}
| num_employees = 3,300 (2010)
| homepage = {{URL|cameco.com}}
}}

'''Cameco Corporation''' (formerly '''Canadian Mining and Energy Corporation''') is the world's largest publicly traded [[Chemistry:Uranium|uranium]] company, based in Saskatoon, Saskatchewan, Canada.<ref name=wsj1 /> In 2015, it was the world's second largest uranium producer, accounting for 18% of world production.<ref name="annual2015">{{Cite web |title=2015 Annual Report |url=https://www.cameco.com/annual_report/2015/ |access-date=15 November 2016 |publisher=Cameco Corporation}}</ref><ref>{{Cite web |date=May 2015 |title=World Uranium Mining |url=http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Mining-of-Uranium/World-Uranium-Mining-Production/ |access-date=2016-04-26 |publisher=World Nuclear Association |archive-date=2014-06-13 |archive-url=https://web.archive.org/web/20140613033122/http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Mining-of-Uranium/World-Uranium-Mining-Production/ |url-status=dead }}</ref>

==History==
The Canadian Mining and Energy Corporation was formed in 1988 by the merger and privatization of two Crown corporations: the federally owned Eldorado Nuclear Limited (known previously as Eldorado Mining and Refining Limited) and Saskatchewan-based Saskatchewan Mining Development Corporation (SMDC).  The name was later shortened to "Cameco Corporation".

The new company was initially owned 62% by the provincial government and 38% by the federal government.  The initial public offering (IPO) for 20% of the company was conducted in July, 1991.  Government ownership of the company decreased over the next eleven years, with full privatization occurring in February, 2002.

In 1996, Cameco acquired Power Resources Inc., the largest uranium producer in the United States.  This was followed in 1998 by the acquisition of Canadian-based Uranerz Exploration and Mining Limited and Uranerz U.S.A., Inc.

In 2008, Cameco purchased a 24% stake in Global Laser Enrichment (GLE), the exclusive licensee of the proprietary Separation of Isotopes by Laser Excitation (SILEX) technology developed by SILEX Systems Limited. GLE is developing this third-generation uranium enrichment technology.  In 2021, Cameco and SILEX purchased  GE-Hitachi's 76% stake in GLE, leaving Cameco with 49% of the company.<ref>{{Cite web |title=Our History - Global Laser Enrichment |url=https://www.gle-us.com/history/ |access-date=2022-09-14 |publisher=Global Laser Enrichment}}</ref>

In 2011, Cameco signed an agreement with Talvivaara Mining Company whereby Cameco would pay US$60 million to construct a uranium extraction circuit at the Talvivaara nickel-zinc mine in Sotkamo. Talvivaara would then pay back the initial construction costs in the form of uranium concentrate; once the initial costs were paid Cameco would continue to purchase the uranium concentrate at a pricing formula based on market price on the day of delivery.<ref>{{Cite web |title=Cameco logs net earnings of $207 million in Q4 on $673 in revenue |url=http://ca.finance.yahoo.com/news/Cameco-logs-net-earnings-207-capress-3858571360.html?x=0 |access-date=2011-02-12 |publisher=Canadian Press}}{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In 2012, it acquired a nuclear fuel intermediary, Nukem Energy.<ref name="wnn140512">{{Cite news |date=2012-05-14 |title=Cameco to buy Nukem Energy |work=World Nuclear News |url=http://world-nuclear-news.org/C-Cameco_to_buy_Nukem_Energy-1405125.html |access-date=2012-05-15}}</ref>

In 2016, Cameco suspended operations at its Rabbit Lake mine, due to low uranium prices.<ref>{{Cite news |date=2016-04-22 |title=Cameco Rallies on View Shutting Mine Will Bolster Uranium Prices |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2016-04-22/cameco-rallies-on-view-shutting-mine-will-bolster-uranium-prices |access-date=2017-12-29}}</ref>  In 2017, it suspended operations for at least 10 months at its McArthur River mine and Key Lake mill,<ref>{{Cite news |date=2017-11-09 |title='There was no indication this was going to happen': Union says workers shocked by temporary shutdowns and layoffs at Cameco uranium operations |language=en-US |work=Saskatoon StarPhoenix |url=https://thestarphoenix.com/news/local-news/cameco-to-suspend-uranium-production-at-two-sites-845-jobs-to-be-cut |access-date=2017-12-29}}</ref> converting that to an indefinite shutdown in 2018 involving the layoff of about 700 staff.<ref name="wnn-20180726">{{Cite news |date=26 July 2018 |title=Cameco shutdown extended indefinitely |publisher=World Nuclear News |url=http://www.world-nuclear-news.org/Articles/Cameco-shutdown-extended-indefinitely |access-date=28 July 2018}}</ref>

In October 2022, Cameco along with [[Company:Brookfield Renewable Partners|Brookfield Renewable Partners]] announced the acquisition of Westinghouse Electric Company in a US$7.9{{nbsp}}billion deal including debt. Cameco will own a 49% interest in the company as part of the deal.<ref>{{cite web |last1=Deka |first1=Kannaki |last2=Kumar |first2=Arunima |date=11 October 2022 |title=Westinghouse to be sold in $7.9-bln deal as interest in nuclear power grows |url=https://www.reuters.com/markets/deals/cameco-corp-brookfield-renewable-partners-buy-westinghouse-79-bln-deal-2022-10-11/ |work={{wipe|Reuters}}}}</ref><ref name=wsj1>{{cite web |last=Hardison |first=Kathryn |date=11 October 2022 |title=Cameco, Brookfield Renewable Partners to Buy Westinghouse Electric for $7.88 Billion |url=https://www.wsj.com/articles/cameco-brookfield-renewable-partners-to-buy-westinghouse-electric-co-for-7-88-billion-11665524511 |work={{wipe|The Wall Street Journal}}}}</ref>
The acquisition was completed in November 2023.<ref>{{cite web|date=7 November 2023 |title=Westinghouse Acquisition by Brookfield and Cameco Complete |url=https://info.westinghousenuclear.com/news/westinghouse-acquisition-by-brookfield-and-cameco-complete}}</ref>

==Operations==
Cameco operates uranium mines in North America and Kazakhstan, including McArthur River-Key Lake, the world's largest uranium producer, and Cigar Lake, the world's highest grade uranium mine, both in Saskatchewan. Other operations in Saskatchewan include a mine and mill at Rabbit Lake, currently in care and maintenance.

In the United States, Cameco operates uranium mines in the states of Nebraska and Wyoming through its US subsidiary Cameco Resources Inc.  Cameco Resources was formed in 2007 through a restructuring of two wholly owned subsidiaries, Power Resources Inc. (Wyoming) and Crow Butte Resources, Inc. (Nebraska).

In the province of Ontario, Cameco operates a uranium refinery in Blind River and a uranium conversion facility in Port Hope, which has faced opposition from some community groups.<ref>[http://www.porthopehealthconcerns.com/index.php?option=com_content&view=article&id=120&Itemid=27 Port Hope Community Health Concerns Committee] {{webarchive|url=https://web.archive.org/web/20120317170757/http://www.porthopehealthconcerns.com/index.php?option=com_content&view=article&id=120&Itemid=27 |date=2012-03-17 }}</ref><ref>[http://www.ph-fare.com/ Port Hope Families Against Radiation Exposure] {{webarchive|url=https://web.archive.org/web/20090206165030/http://www.ph-fare.com/ |date=2009-02-06 }}</ref> Cameco is the exclusive fuel supplier to Bruce Power, which supplies 30% of Ontario's electricity through its nuclear generating plant.<ref>{{Cite news |title=Cameco enters $2B deal with Ontario's Bruce Power |language=en |work=CBC News |url=http://www.cbc.ca/news/canada/saskatoon/cameco-2b-deal-ontario-bruce-power-1.4134519 |access-date=2017-12-29}}</ref>  It used to own part of Bruce Power, but it sold its interest in 2014.<ref>{{Cite news |title=Cameco to sell stake in Bruce Power nuclear partnership to Borealis for $450M |language=en |work=Global News |url=https://globalnews.ca/news/1120052/cameco-to-sell-stake-in-bruce-power-to-borealis/ |access-date=2017-12-29}}</ref>

In 2004, Cameco spun off its [[Earth:Gold mining|gold mining]] operations in Kyrgyzstan, Mongolia and the USA to a newly formed public company, [[Company:Centerra Gold|Centerra Gold]].  Cameco divested its remaining interest in Centerra on December 30, 2009.<ref>{{Cite web |title=Cameco Announces Completion of Centerra Common Share Sale |url=http://www.cameco.com/media/news_releases/2009/?id=506 |url-status=dead |archive-url=https://web.archive.org/web/20100225091730/http://www.cameco.com/media/news_releases/2009/?id=506 |archive-date=2010-02-25 |access-date=2010-02-01}}</ref>

In January 2011, Cameco participated in the clean up of a ship-board uranium concentrate spill on the [[Engineering:MCP Altona|MCP Altona]] that had occurred on December 23, 2010.<ref>{{Cite news |title=UPDATE Jan. 24: Uranium ship out of Stuart Channel |url=https://www.ladysmithchronicle.com/news/update-jan-24-uranium-ship-out-of-stuart-channel/ |newspaper=Ladysmith Chemainus Chronicle |date=2011-01-18 |accessdate=2021-10-26}}</ref>

{| class="wikitable" align="center"
|-
!colspan="2" style="background:#ffdead;" align="center"| Mines
|-
!colspan="2" align="center"| Producing
|-
! Name
! Location
|-
| Smith Ranch-Highland
| Wyoming, United States
|-
| Cigar Lake
| Saskatchewan, Canada
|-
| Crow Butte
| Nebraska, United States
|-
| Inkai
| Kazakhstan
|-
| McArthur River
| Saskatchewan, Canada
|-
! colspan="2" |Suspended
|-
| Eagle Point (Rabbit Lake)
| Saskatchewan, Canada
|}

{| class="wikitable" align="center"
|-
!colspan="2" style="background:#ffdead;" align="center"| Mills
|-
! Name
! Location
|-
| Key Lake
| Saskatchewan, Canada
|-
| Rabbit Lake
| Saskatchewan, Canada
|}

{| class="wikitable" align="center"
|-
!colspan="2" style="background:#ffdead;" align="center"| Fuel Production
|-
! Name
! Location
|-
| Port Hope conversion facility
| Ontario, Canada
|-
| Blind River refinery
| Ontario, Canada
|}

== Tax Dodging Dispute ==
The Canadian Revenue Agency (CRA) claimed Cameco's tax scheme started in 1999. Cameco created a marketing [[Social:Subsidiary|subsidiary]] in [[Place:Zug|Zug]], {{wipe|Switzerland}}, and drafted a 17-year agreement to supply uranium to the Swiss subsidiary at a rate of $10 a pound. The corporate tax rate in Switzerland is estimated to be at around 10 per cent. The Canadian corporate rate estimated to be at least 27 per cent.<ref>{{Cite web |last=Leo |first=Geoff |date=September 19, 2013 |title=Ottawa accuses Cameco of multi-million dollar tax dodge {{!}} CBC News |url=https://www.cbc.ca/news/canada/saskatchewan/ottawa-accuses-cameco-of-multi-million-dollar-tax-dodge-1.1860079 |access-date=2023-04-21 |website=CBC News}}</ref> By having the Swiss subsidiary purchase the uranium first, and then selling it elsewhere, Cameco was able to pay the Canadian tax rate for the first $10 and the remainder at the Swiss tax rate.

In 2012, the Canadian research firm Veritas Investment Research estimated that Cameco paid $36 million in cash taxes on $680 million pre-tax cash flow from operations, or at a rate of 5 per cent. During the previous six-year period, the Swiss subsidiary claimed $4.3 billion in profits, while its Canadian operation claimed a loss of $1.3 billion. Cameco had also established another subsidiary in Barbados, a known tax haven. The operations conducted in this subsidiary were not clear, but court documents showed Cameco paid the Barbados subsidiary 50 per cent of its Swiss subsidiary's pre-tax profits in 2005.<ref name=":0">{{Cite web |last=Livesey |first=Bruce |date=2016-04-25 |title=Did this company engineer the largest tax dodge in Canadian history? |url=https://www.nationalobserver.com/2016/04/25/news/did-company-engineer-largest-tax-dodge-canadian-history |access-date=2023-04-21 |website=Canada's National Observer |language=en}}</ref>

The CRA claimed that the Swiss subsidiary profits had to be taxed at Canadian rates, because these subsidiaries did not carry out any real business activities and were just paper companies. They wanted Cameco to pay $2.1 billion in back taxes. Cameco argued that their offshore structures were legitimate and permitted by Canadian tax laws.<ref name=":0" />

In 2018, a judge from the Tax Court of Canada, as well 3 judges from the Federal Court of Appeal ruled in Cameco's favour and found the manner it acted in to be lawful.<ref>{{Cite web |title=Federal Court of Appeal has upheld Tax Court ruling challenged by CRA: Cameco {{!}} Globalnews.ca |url=https://globalnews.ca/news/7117548/federal-court-of-appeal-has-upheld-tax-court-ruling-challenged-by-cra-cameco/ |access-date=2023-04-21 |website=Global News |language=en-US}}</ref><ref>{{Cite web |title=Ruling in Cameco tax case tied to sale of Russian uranium puts billions at stake, CRA says |url=https://financialpost.com/news/fp-street/ruling-in-cameco-tax-case-tied-to-sale-of-russian-uranium-puts-billions-in-revenue-at-stake-cra-says |access-date=2023-04-21 |website=financialpost |language=en-CA}}</ref> The Tax Court also awarded the company with $10.25 million in legal fees and up to $17.9 million in disbursements for costs incurred. The CRA looked for a final appeal from the Supreme Court of Canada, but on February 18, 2021, the court rejected the appeal.<ref>{{Cite web |title=Key takeaways from Supreme Court's termination of Cameco transfer pricing saga |url=https://www.blg.com/en/insights/2021/02/key-takeaways-from-supreme-courts-termination-of-cameco-transfer-pricing-saga |access-date=2023-04-21 |website=BLG |language=en}}</ref> They upheld the ruling from the previous judges, and this left the CRA with no further means to pursue this case.

==See also==
*Uranium Participation Corporation
*[[Physics:Nuclear power|Nuclear power]]
*Anti-nuclear movement in Canada
*[[Physics:World Uranium Hearing|World Uranium Hearing]]
*Nuclear power in Canada

==References==
{{Reflist}}

==External links==
* [http://www.cameco.com/ Cameco's official site]
{{S&P/TSX 60}}


[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Mineral exploration]]
[[Category:Companies (Earth)]]
[[Category:Companies]]

{{Sourceattribution|Cameco}}