Canada and India take next step in nuclear deal that would see uranium shipped

Canada and India have taken the next step towards full implementation of a nuclear co-operation agreement.

The Canadian Nuclear Safety Commission and India's Department of Atomic Energy have finalized an arrangement that is to allow Canadian companies to export nuclear items to India for peaceful uses.

The announcement made at Cameco Corp. in Saskatoon comes after Prime Minister Stephen Harper and his Indian counterpart, Manmohan Singh, sealed a nuclear deal last November.

A nuclear co-operation agreement had been signed more than two years ago, but its implementation stalled over the details.

Canada wanted more oversight over where the products wound up.

The agreement ensures Canadian exports only go to facilities in India under International Atomic Energy Agency safeguards.

India has announced plans to build 12 new reactors by 2021, so the Asian country's demand for uranium yellowcake is expected to triple to about $650 million in annual purchases.

All of the Canadian uranium to be exported to India is produced in Saskatchewan, the world's second-leading producer of uranium behind Kazakhstan.