Canada and India are nearing the conclusion of a 10-year uranium supply contract potentially worth $3 billion, according to sources speaking at the recent India Energy Week in Goa. This agreement, anticipated to be formalized during a March summit between the leaders of both nations, addresses India's escalating energy demands and Canada's position as the world's second-largest uranium producer. India is aggressively expanding its nuclear capacity, targeting 100 gigawatts by 2047, necessitating secure, long-term fuel sourcing.
The core of the supply chain involves Cameco Corporation, the world’s largest publicly traded uranium company, which holds the majority stake in the high-grade Cigar Lake mine in Saskatchewan. A spokesperson for India’s Department of Atomic Energy indicated the potential 10-year deal value would be in the region of $3 billion. Cameco declined to offer specific comment on the ongoing negotiations, citing appropriate timing for market updates.
Canadian Minister of Energy and Natural Resources Tim Hodgson publicly confirmed ongoing discussions during a fireside chat at the event. Hodgson stated that Prime Minister Mark Carney is scheduled to meet with Indian Prime Minister Narendra Modi in Delhi in March to finalize trade arrangements, including the uranium supplies. He emphasized that Canada provides high-quality uranium for peaceful purposes globally, positioning this deal as a mutually beneficial security enhancement for both buyer and supplier.
Hodgson characterized the current diplomatic environment as a necessary "reset" in bilateral relations, which suffered significant strain following a diplomatic dispute in 2023-2024. The previous tensions stemmed from allegations involving Indian intelligence services concerning an alleged assassination on Canadian soil, which led to mutual expulsions of diplomatic staff. Prime Minister Carney initiated efforts in November to mend the relationship and restore trade momentum.
This energy pact is viewed as a tangible outcome of the repaired diplomatic channel, aligning with the Canadian government’s stated goal to double the current $30 billion in bilateral trade by the end of the decade. Beyond uranium, the scope for future cooperation reportedly includes minerals, hydrocarbons, and other natural resources where Canada maintains a strong supply base.
Canada's role as a reliable supplier of low-cost, high-quality nuclear fuel directly supports India's ambitious domestic energy security strategy. The finalization of this agreement demonstrates a pragmatic return to economic priorities over recent geopolitical friction.
