Regulatory Regimes

Cameco works in a highly regulated industry and is subject to a complex set of international, national and provincial laws and regulations. These laws and regulations govern the licensing of our sites, environmental performance standards, decommissioning standards and activities, and the transportation and sale of our products.

International

Internationally, Cameco’s activities, primarily the sale of our product, are governed by The Treaty on the Non-Proliferation of Nuclear Weapons (NPT), which is an international treaty that was established in 1970. It has three objectives:

to prevent the spread of nuclear weapons and weapons technology
to foster the peaceful uses of nuclear energy
to further the goal of achieving general and complete disarmament

The NPT establishes a safeguards system under the responsibility of the International Atomic Energy Agency. Almost all countries are signatories to the NPT, including Canada, the US, the United Kingdom and France. We are, therefore, subject to the NPT and required to comply with the International Atomic Energy Agency’s requirements. Detailed bi-lateral administrative arrangements are typically then established in order to practically manage these requirements on a country-to-country basis.

In the very specific case of India, which is not a signatory to the NPT, but with whom commercial nuclear trade with a number of countries has been re-established in recent years, an agreement was reached with the IAEA to bring India’s civilian facilities under IAEA safeguards. This has opened the door for India to participate in international nuclear fuel and equipment commerce with a number of nations, including Canada, having now entered into bi-lateral agreements establishing the framework under which the countries can cooperate.

Canada

In Canada, our operations are primarily regulated by four main agencies:

the Canadian Nuclear Safety Commission (CNSC)
Environment Canada
the Saskatchewan Ministry of Environment
the Ontario Ministry of the Environment

These agencies are responsible for a number of acts and regulations that regulate our operations and activities.

The Nuclear Safety and Control Act (NSCA) is the primary federal legislation that governs our operations. The NSCA authorizes the CNSC to grant licences for nuclear facilities and to make regulations governing all aspects of the development and application of nuclear energy, including uranium mining, milling, conversion, fuel fabrication and transportation. Regulations under the NSCA regulate environmental performance, transportation and packaging, safety, security, decommissioning and radiation protection.

The NSCA emphasizes the importance of environmental protection, as well as requiring licensees to make adequate provision for the health and safety of people. As such, the CNSC, through its Radiation Protection Regulations, is the lead Canadian regulator when it comes to ensuring licensees maintain robust radiation protection programs to ensure radiation exposures remain as low as reasonably achievable, social and economic factors taken into account (the ALARA principle).

While the NSCA is the primary federal legislation that regulates Cameco activities, there are also a number of other federal acts that we must comply with, including, but not limited to:

the Canadian Environmental Protection Act, 1999
the Canadian Environmental Assessment Act, 2012
the Fisheries Act

Other federal legislation governs activities such as health and safety of workers, transportation of our products and the protection of species at risk.

In both Ontario and Saskatchewan, Cameco’s operations are also subject to provincial legislation. Like their federal counterparts, these acts and regulations govern everything from environmental performance, reporting and mine safety to environmental assessments, reclamation, decommissioning requirements and worker safety.

United States

Our U.S. operations must meet federal, state and local regulations governing air emissions, water discharges, handling and disposal of hazardous materials and site reclamation, among other things.

Mining activities are subject to comprehensive environmental regulations issued by the US Nuclear Regulatory Commission (NRC), Bureau of Land Management, Environmental Protection Agency and state environmental agencies. The process of obtaining mine permits and licences generally takes several years and involves environmental assessment reports, public hearings and comment periods.

At the federal level, our US operations are primarily regulated by the NRC according to the Atomic Energy Act of 1954. The main purpose of this act is to ensure people and the environment are protected from radioactive materials and to regulate most aspects of the uranium recovery process. The NRC also regulates uranium exports from the US and the transport of nuclear materials within the US. Safety is regulated by the federal Department of Transportation.

Our operations in Wyoming are regulated by the NRC and the Wyoming Department of Environmental Quality, Land Quality Division according to the Wyoming Environmental Quality Act (WEQA) and the Land Quality Division Non-Coal Rules and Regulations under the WEQA. The state also administers a number of Environmental Protection Agency programs under the Clean Air Act and the Clean Water Act.

In Nebraska, the uranium recovery industry is regulated by the NRC and the Nebraska Department of Environmental Quality according to the Nebraska Environmental Protection Act.

Restoration of our Crow Butte wellfields is regulated by the Nebraska Department of Environmental Quality and the NRC. Restoration of our Smith Ranch-Highland well fields is regulated by the Wyoming Department of Environmental Quality and the NRC.

Kazakhstan

In its resource use contract with the Kazakhstan government, JV Inkai committed to conducting its operations according to good international mining practices. It complies with the environmental requirements of Kazakhstan legislation, and, as an industrial company, it must also reduce, control or eliminate various kinds of pollution and protect natural resources. JV Inkai is required to submit annual reports on pollution levels to the Kazakhstan environmental, tax and statistics authorities. The authorities conduct tests to validate Inkai's results.

Environmental protection legislation in Kazakhstan has evolved rapidly, especially in recent years. As the subsoil use sector has evolved, there has been a trend towards greater regulation, heightened enforcement and greater liability for non-compliance. The most significant development was the adoption of the Ecological Code, dated January 9, 2007, and in effect as of February 3, 2007. This code replaced the three main laws that had related to environmental protection. Amendments were made to the code in December 2011 that include more stringent environmental protection regulations, particularly relating to the control of greenhouse gas emissions, obtaining environmental permits, state monitoring requirements and other similar matters.

JV Inkai is required to comply with environmental requirements during all stages of the project, and must develop an environmental impact assessment for examination by a state environmental expert before making any legal, organizational or economic decisions that could have an effect on the environment and public health.

Under the Ecological Code, Inkai needs an environmental permit to operate. The permit certifies the holder's right to discharge emissions into the environment, provided that it complies with the requirements of the permit and the Ecological Code. Inkai has a permit for environmental emissions and discharges that is valid until December 2016 and an emissions permit for drilling activities that is valid until December 2016. Inkai also holds the required permits under the Water Code.

Government authorities and the courts enforce compliance with these permits, and violations can result in the imposition of administrative, civil or criminal penalties, the suspension or stopping of operations, orders to pay compensation, orders to remedy the effects of violations and orders to take preventive steps against possible future violations. In certain situations, the issuing authority may suspend or revoke the permits.

Inkai has environmental insurance, as required by the Ecological Code and the resource use contract. Inkai also has voluntary civil liability insurance for environment protection.