Cameco buys into GEH

Telecomworldwire, June 20, 2008

TELECOMWORLDWIRE-20 June 2008-Cameco buys into GEH(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

GE Hitachi Nuclear Energy (GEH) and Cameco Corp, a Canadian based uranium producer, announced 20 June that Cameco Corp's US subsidiary, Cameco Enrichment Holdings LLC, has acquired an interest in GEH's laser enrichment venture.

GE Hitachi Global Laser Enrichment (GLE) is a GEH subsidiary that has been granted the license to develop, commercialise and launch a third generation enrichment process using lasers to enrich uranium for nuclear power generation. GEH was created by GE Energy and Hitachi Ltd to service the nuclear industry.

Cameco, through its US subsidiary Cameco Enrichment Holdings LLC, has acquired a 24% stake in GLE. GE remains the majority owner, with an indirect 51% stake, and Hitachi Ltd indirectly own the remainder or the shares.

GLE acquired the right to develop the technology from the original developer, Silex Systems Ltd in 2006. Enriched uranium demand is likely to increase dramatically as the world's climate changes and other energy sources become unpopular or scarce.

A test facility has recently been approved by the US Nuclear Regulatory Commission. GLE anticipates start up of a test loop by late 2008. Although GLE has yet to make a final decision on whether to construct a commercial facility, it has commenced licensing activities to support a projected start up date of 2012, with a target capacity for the full scale plant of between 3.5 and 6 million separative work units.

GEH had earlier (30 April) announced the selection of its headquarters site in Wilmington, North Carolina as the site for the potential full-scale production facility. Additional regulatory approval would be needed before construction of the facility could get underway.

((Comments on this story may be sent to tww.feedback@m2.com))