Saskatchewan moves ahead with nuclear agenda despite crisis in Japan
Jennifer Graham, The Canadian Press
Mon, 14 Mar 2011 18:19:00 CST
REGINA – Saskatchewan plans to pursue its nuclear agenda even as the crisis in Japan raises questions about the industry’s safety.
There are concerns about possible meltdowns at some Japanese reactors after an earthquake and tsunami affected cooling units.
Innovation Minister Rob Norris, who is also responsible for SaskPower, said Monday that the province will move ahead with nuclear medicine, material science and research on small-reactor technology. The situation in Japan is serious but more research can help in the future, he added.
“We need to make sure that we’re contributing to this dialogue, to the discussion and actually to the science about making the technology safer,” said Norris.
Saskatchewan is the world’s largest producer of uranium, the key component in nuclear power generation, but so far it hasn’t gone beyond mining the raw material.
“With 20 per cent of the world’s uranium produced here in Saskatchewan, moving forward isn’t an option,” said Norris.
“It’s actually an obligation, an ethical obligation that we have. Now’s the time for more science and we think we’re very well positioned to help contribute certainly into the future.”
Premier Brad Wall has repeatedly said the government is interested in uranium value-added opportunities.
The Saskatchewan government rejected the idea of allowing a large-scale nuclear plant to be built in December 2009. However, Wall said in January that Saskatchewan is looking at a partnership with a private company to research whether a small reactor could fit into the province’s existing power grid.
Earlier this month, Wall announced that the province will build a new research centre for nuclear science and medicine at the University of Saskatchewan in Saskatoon.
Norris noted there are two research reactors at the university. He said the research infrastructure is among the most highly regulated in the world and suggested people should not be afraid of moving forward.
“We’ve said first and foremost, any step is going to be focused on safety,” said Norris.
“We’re certainly very aware of the safety issues that are now coming up within Japan. It certainly doesn’t detract from the track that we’re on, in fact I think it reinforces it.”
Uranium is a major economic engine for Saskatchewan, where Cameco (TSX:CCO) — the world’s largest uranium miner — is headquartered.
A letter sent by Cameco to the government last week said the company contributed over $145 million last year in taxes and royalties through its operations in the province. More than 11,000 direct and indirect jobs are provided in Saskatchewan as a result of the uranium industry, it said.
Cameco’s shares took a beating Monday on the Toronto Stock Exchange, tumbling nearly 13 per cent to close at $31.70.
But Cameco CEO Jerry Grandey said he doesn’t expect a hit to the Saskatchewan economy.
“I really don’t expect so. As I indicated, we’re going to be well within guidance for sales and other guidance we put out in terms of revenue. So I don’t see that this is having a significant impact at all on the province,” Grandey said in a conference call.
Norris said he was in contact with Cameco officials over the weekend about the situation as the company sought reassurance about Saskatchewan’s nuclear plans.
“The question about the research agenda did come up and we reinforced that we think now’s a very, very vital time to actually contribute to the science,” said Norris.