Major shareholders of the US nuclear firm Westinghouse have collectively issued statements welcoming the South Korea-US nuclear framework agreement, under which the two countries will inject 120 billion US dollars in US investment funds to build eight large-scale nuclear reactors in the United States.

Tim Gitzel, CEO of Canada's uranium mining company Cameco, which holds a 49 percent stake in Westinghouse, said in a statement released on September 30 (local time), "We are pleased that the US government is continuing its stance on expanding nuclear power generation capacity."

Cameco stated, "The framework includes a one-off waiver under the 2025 settlement agreement regarding the intellectual property dispute that Westinghouse had experienced with Korea Electric Power Corporation and Korea Hydro & Nuclear Power." It added, "This has made it possible to construct up to two APR1400 nuclear reactors in the United States."

"Westinghouse will secure a compensation package of approximately 2 billion US dollars per APR1400 reactor—totaling 4.0 billion US dollars (approx. 5.4 trillion KRW) for two units—combined from intellectual property licensing, engineering and procurement services, subcontracting opportunities, and long-term nuclear fuel manufacturing service supplies," Cameco said.

KEPCO and KHNP signed a 50-year long-term agreement with Westinghouse in January of last year under which royalties and service purchases would be provided for every nuclear reactor exported.

This means that in exchange for providing an exception to this contract clause that had previously blocked the US construction of the South Korean nuclear model APR1400, Westinghouse will additionally receive such royalties and engineering and construction service payments.

Cameco also mentioned that the possibility of South Korea acquiring a stake in Westinghouse remains open, adding, "Even if South Korea's equity participation takes place, it is expected not to affect the stake in Westinghouse held by Cameco."

The framework is reportedly packed with measures for South Korea to secure a 5 to 10 percent stake in Westinghouse.

Gitzel said, "Our top priority remains the fulfillment of the US Department of Energy's conditional nuclear supply chain loan commitment, through which we expect the construction period of AP1000 nuclear reactors to be shortened by up to three years."

Brookfield, a Canadian private equity firm holding a 51 percent stake, also stated in its release, "During the nuclear reactor construction process, Westinghouse will not only receive upfront technology fees but also secure guaranteed business scopes related to nuclear construction and obtain practical benefits such as nuclear fuel manufacturing service supply contracts."

Brookfield emphasized, "This framework and financing commitment are separate from the strategic partnership including the 17.5 billion US dollars in conditional loan commitments for long-term procurement item purchase support announced by the Department of Energy in June." It added, "This framework supports the US determination to substantially expand nuclear power generation capacity to meet soaring electricity demand driven by electrification, re-industrialization, and AI and computing infrastructure establishment."

Both major shareholders added, "The conditions of this transaction are currently non-binding and are subject to adjustment depending on the results of procedures and negotiations such as final contract execution, site selection, regulatory approval, and financing procurement."

(Photo: AP, Yonhap News)