Chairman, thank you very much and good afternoon.
As you've said, my name is Gerry Grandey. I'm president and CEO of Cameco Corporation. I appreciate the opportunity to speak with you today.
As you may be aware, Cameco is a nuclear energy company based in my hometown of Saskatoon, Saskatchewan. From that base, we operate 11 production sites in three countries. We have exploration properties and customers all across the globe. All of that makes Cameco one of the largest suppliers of uranium fuel in the world.
Our Canadian operations are in the Athabasca Basin in northern Saskatchewan. They include the McArthur River mine and the Key Lake mill, along with the Rabbit Lake mill, which has been in operation for over 30 years now. We also operate the yet to be developed Cigar Lake project, which is the largest high-grade uranium deposit in the world.
We're a service provider to CANDU operators in Canada, Korea, and Argentina. To do that, we have a refinery in Blind River, Ontario, and conversion and fuel manufacturing facilities in Port Hope.
Finally, through our partnership interest in Bruce Power, we are involved in nuclear electricity generation.
Only a handful of companies would describe themselves as nuclear energy companies. Cameco is one of those.
We're also one of the leading employers of first nations people in Canada. Aboriginals and Métis comprise more than 50% of our workforce at our northern Saskatchewan operations. Indeed, a recent study by the University of Saskatchewan found that Cameco, directly or indirectly, is responsible for the employment of one in 20 aboriginal people in the province.
Importantly, in the last two years Cameco has created 1,000 new jobs in Canada, and we anticipate doing the same over the next two to three years.
But our impact doesn't stop with employment. Last year 70% of the services purchased by our Saskatchewan mines were from businesses owned by first nations people, businesses that we helped create over the last 20 years.
Let me speak a little bit about how our actions provide even broader benefits.
I've been in this industry for over 30 years. I believe that now more than ever it's a very exciting time to be in the nuclear industry. Around the globe we see the need for clean, reliable energy, and that need is growing. At the same time, there is a rapidly expanding awareness of the security and environmental benefits of nuclear energy.
We know that nuclear electricity emits no greenhouse gases, and with its low operating costs, it will be even more attractive as the cost of capturing carbon is recognized. This is an issue that will be front and centre at the upcoming Copenhagen Round, but the issue is broader than climate change.
In a study released last week by the U.S. National Research Council, the hidden health and environmental costs of energy production and consumption using fossil fuels in the U.S. were put at $120 billion in 2005. In that study, it was once again confirmed that the life-cycle external costs of nuclear are negligible.
Canada has always played a very prominent role in the international nuclear arena, including the seminal nuclear weapons dismantling deal, in which Cameco is in partnership with the Russians. To date, 15,000 weapons have been dismantled as a result of that partnership. Copenhagen will provide a further opportunity for Canada to lead in the use of nuclear energy to address climate change.
Of course, nuclear energy cannot solve the entire climate problem on its own; however, virtually all of the mainstream analyses by independent organizations show that nuclear energy must be part of the portfolio and that a major expansion of nuclear generating capacity over the next 30 to 50 years is essential.
Today we have concrete examples that reflect this resurgence. In China alone, over 20 reactors are now under construction. The U.S. has broken ground on the first two new reactors to be built in that country in the last three decades.
India is expanding its nuclear capacity, with six reactors currently under construction and a dozen more that are planned, while Taiwan, Russia, South Korea, and Japan also have reactors under construction. Europe has joined the fold with new reactors being completed in Finland and France. The British government and nuclear industry are moving forward with five to 10 reactors in the next 15 years.
From Cameco's perspective, an ample supply of uranium fuel will obviously be needed to help fuel this burgeoning fleet of new reactors. That is good news for Canada, a country blessed with abundant uranium resources. This positive activity means opportunity, but Canada needs to do everything it can to remain a world leader. This means having a supportive government and a regulatory system that is predictable and efficient, while at the same time keeping safety and sustainability fully intact and paramount.
We have a very active and positive relationship with our regulator, the CNSC. This relationship is a constant in our lives, and we welcome the scrutiny that reassures the public about the superb safety and environmental record of our industry.
That said, we ask you, the legislative arm of government, to ensure that the CNSC is well resourced to do its job expeditiously. While the CNSC aptly recognizes some of the business imperatives that we face in a highly competitive world, streamlining the regulatory process is absolutely essential. Put plainly, the more quickly projects are approved, the more quickly we can put people to work, and the more quickly we contribute to the financial health of Canada.
I assure you that in advocating this we're not abandoning or suggesting changes that compromise safety. Rather, if a company like ours is to meet the needs of an energy-hungry world, there needs to be an increasingly efficient regulatory framework that meets the rigours of competition.
While Canada could boast for many years that we were the world's leading uranium production country, regrettably we are about to be passed by Kazakhstan. Other countries are now closing in as well. Canada needs to rise to this challenge and seriously address regulatory oversight and reform.
More and more countries want access to Canadian uranium and nuclear technology, but they are precluded from accessing it until government-to-government nuclear cooperation agreements are in place. These pacts outline the principles that ensure our products and technology are used for civilian power generation and not for military purposes. Accordingly, it is imperative that the Department of Foreign Affairs and International Trade be equipped and encouraged to advance these agreements to allow Canada to capitalize on the many opportunities that exist.
As one of the world's largest commercial producers of uranium, Cameco is ready to meet the need for clean energy as well as the high expectations of citizens who want this objective reached in a safe and environmentally sustainable manner. Clearly, the world needs power, and if Canada and Cameco are to continue to be leaders in this sector, we must all work together.
Thank you very much for your invitation to address you today.