Canada uranium supplier, Fukushima operator in contract fight

Canadian uranium supplier Cameco's share price fell more than 12 percent in New York on Wednesday after the operator of the Fukushima plant in Japan canceled a Can$1.3 billion (US$1 billion) fuel supply contract.

Saskatoon, Saskatchewan-based Cameco said in a statement that it considers Tokyo Electric Power Co. to be in default after it rejected a delivery of uranium, and would sue.

In its notice of termination, TEPCO cited government regulations arising from the Fukushima meltdown in March 2011 that prevented it from operating its nuclear generating plants over 18 months.

A quake-triggered tsunami swamped the Fukushima plant in 2011, sending some reactors into meltdown and setting off the worst nuclear disaster in a generation.

TEPCO has already received and paid for 2.2 million pounds of uranium since 2014. The termination would affect 9.3 million pounds of uranium deliveries through 2028.

Cameco produces about 18 percent of the world's uranium from its mines in Canada, the United States and Kazakhstan.

Its stock price fell more than 12 percent to US$11.19 on the New York Stock Exchange.