Two of the world’s largest uranium producers have signed a long-term partnership with Indigenous-owned Rise Air to transport their workforces to remote northern Saskatchewan.
Orano Canada Inc. and Cameco Corporation (TSE: CCO) (NYSE: CCJ) announced on Thursday, that they had signed a 15-year, CAD$500-million agreement with Rise Air.
Cameco operates some of the province’s most significant uranium sites, including the McArthur River and Key Lake operations, known as the world’s largest high-grade uranium mine and mill. Meanwhile, Orano Canada, a subsidiary of the Paris-based Orano Group, recently reopened the McClean Lake uranium mine and mill and remains a key partner in the McArthur River, Key Lake, and Cigar Lake operations in the Athabasca Basin.
Together, the companies employ thousands of workers across northern Saskatchewan, including many Indigenous employees.
Rise Air President and CEO Derek Nice said the company will invest CAD$98 million to purchase three new planes. French aircraft manufacturer ATR, a joint venture between Airbus and Leonardo, produces the ATR72-600 regional aircraft. Furthermore, the planes can seat up to 78 passengers and are recognized for their fuel efficiency and low CO2 emissions.
“The planes that we will use to service this contract are brand new planes that we’ve ordered from the factory,” said Nice.
“They are the most advanced regional airliners being manufactured in the world today. Rise Air is the Canadian launch customer for these aircraft. We are spearheading the introduction of these airplanes into Canada. I’m sure others will follow us.”
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Community leaders support the agreement
The fleet expansion strengthens Rise Air’s position as a vital link in Saskatchewan’s north. The company operates fixed-wing aircraft, including float planes, and can deliver people and goods to remote communities. Additionally, twelve First Nations communities and four municipalities share ownership through Athabasca Basin Development and the Prince Albert Development Corporation.
Nice also said the large investment only made sense with the new partnership in place.
“The renewal of this long-standing partnership through the signing of a new contract signifies our confidence in Rise Air and our commitment to continuing to work together, as we prepare for the bright future ahead for the Saskatchewan uranium industry,” said Jim Corman, Orano Canada’s President and CEO.
Community leaders also welcomed the agreement.
Furthermore, Coreen Sayazie, Chief of Black Lake First Nation, said the partnership brings economic opportunities to northern communities. Athabasca Basin Development Chair Anne Robillard noted that the long-term deal provides security for planning.
“A 15-year commitment like this helps our companies plan important things like workforce training, and strengthens one of our largest investments,” said Robillard.
“When our investments are strong, it helps improve service and build wealth for our communities.”
In addition to the new aircraft purchase, Rise Air is supporting training programs to prepare northern residents for aviation careers. Nice pointed to the Dziret’ai Pilot Training Program, which combines funding from Rise Air, Cameco, Orano, multiple levels of government, and First Nations communities.
The deal extends the long-standing collaboration among Cameco, Orano, and Rise Air while deepening the economic benefits for Indigenous communities.
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joseph@mugglehead.com
