Thank you, Madam Chair.
Good afternoon. It is my pleasure to appear at committee today on behalf of Cameco Corporation.
During this period of geopolitical uncertainty and change, Canada has a rare opportunity to capitalize on its strategic and competitive advantages in nuclear energy and to lead in the areas the committee is studying.
Cameco is a fully integrated nuclear energy company headquartered in Saskatoon, Saskatchewan. Utilities in Canada and around the world rely on Cameco to provide nuclear fuel solutions and reactor technologies for the generation of safe, reliable and carbon-free nuclear power. Our capabilities in Canada include uranium exploration and mining, uranium refining and conversion, and nuclear fuel manufacturing. Further capabilities include uranium enrichment through our partnership with Global Laser Enrichment, and full Canadian ownership, oversight and control of the world's leading modern, proven and operating light water reactor, the AP1000, through our partnership in Westinghouse with Brookfield.
Cameco's leading position across the nuclear sector, if leveraged appropriately, can position Canada to deliver clean, stable baseload power; a secure, allied nuclear fuel supply; a stronger and more resilient domestic supply chain with exportable nuclear capabilities; and strengthened energy and national security. Nuclear energy can be the cornerstone of long-term economic growth, electrification, energy security and geopolitical influence. The growth of electricity demand, driven by electrification as well as industrial and economic expansion, requires large-scale, reliable and low-carbon power that can be delivered within this decade.
The only technology capable of delivering on that timeline is Cameco's proven deployable AP1000 reactor. Diversifying Canada's nuclear sector to include the Cameco-owned AP1000 would deliver the enhanced national and energy security, global supply chain opportunities, trade expansion and diversification, and strategic geopolitical advantages that can underpin Canada's modern nuclear future.
The world has made a nuclear technology choice. That choice is light water reactors, including those here in Ontario, where Ontario Power Generation is constructing the GE Vernova Hitachi's BWRX-300 light water small modular reactor at Darlington. More than 90%—and growing—of the world's reactors are of the light water design. Among new reactors under construction around the world, 66 of 68 are light water reactors. Tapping into this global opportunity in Canada would unlock export opportunities, international partnerships and Canadian economic potential. AP1000 reactors could modernize the Canadian nuclear sector and enhance the relevance of Canada's nuclear supply chain, talent and innovation around the world.
Uranium is the commodity for which there is absolutely no substitute. Nuclear reactors cannot operate without it. As a result, uranium is highly trade-dependent. Ninety per cent of global nuclear power production occurs in countries that have little or no uranium production. Because of this significant nuclear power generation versus uranium production imbalance, nuclear power programs in countries around the world look to Cameco and Canada to help them manage their uranium trade dependence.
Canada is the second-largest uranium producer in the world, and Cameco has significant capabilities in that area. Those capabilities are backed by more than 465 million pounds of uranium reserves. Our tremendous geologic endowment of uranium offers important leverage if used strategically and if underpinned by an understanding of uranium market dynamics. Energy and national security concerns sit at the top of the priority list for most governments around the world. Countries that have civil nuclear power programs are looking to Canada as a stable and secure source of uranium. Canada must consider deliberate, strategic and tactical uranium resource development to further its geopolitical economic advantage globally and here at home.
Every in-service and new-build nuclear reactor requires nuclear fuel. Canada, Saskatchewan, Ontario and Cameco are world leaders in turning uranium into nuclear fuel. We operate the world's largest uranium refinery and the largest UO2 and UF6 conversion facilities in Ontario. Cameco's fuel fabrication capabilities and Westinghouse's light water capabilities produce fuel bundles that are used in 65% of the western world's reactors.
Cameco, Westinghouse and our partners in the nuclear fuel supply chain have made it possible for important allies around the world—most importantly, in central and eastern Europe—to break free from Russia's stranglehold on the nuclear fuel supply, significantly enhancing energy and strategic security. This is particularly true for our allied nations.
Now is the time to maximize Canada's nuclear fuel advantages and play a leading role in enhancing global energy security. A secure nuclear fuel cycle backstopped by a reliable nation like Canada and a reliable commercial partner like Cameco is of strategic importance to our allies and trading partners.
Canada must diversify its nuclear capabilities to best capitalize on the global opportunity delivered by its world-class nuclear sector. Market diversification, supply chain and economic growth, energy and national security need to be built on the strength of the Canadian nuclear industry and the global reach of the AP1000 technology. Canada benefits from having Cameco as a Canadian champion with strategic control over multiple globally important nuclear facilities and technologies, with long-term, durable uranium contracts.
As the global nuclear industry grows in profitability, Cameco's success is truly a Canadian nation-building success. Every dollar of profit that Cameco earns comes home to Saskatoon.
Thank you very much. I look forward to your questions.