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Cameco Corp. says a Japanese electrical utility’s justification for abandoning a uranium sales contract worth an estimated $1.3 billion over the next 11 years is without merit, and it will pursue legal action to recover the lost revenue.

The Saskatoon-based company said Wednesday that it rejects Tokyo Electric Power Company Holdings Inc.’s (TEPCO) arguments, and that it considers the Fukushima Daiichi nuclear plant owner to be in default on the massive deal.

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“It appears to us, and it is our opinion, that TEPCO simply doesn’t like the terms they committed to, particularly the price, and want to escape from the agreement,” Cameco President and CEO Tim Gitzel told analysts on a conference call early Wednesday.

TEPCO, which did not respond to a request for comment, told Cameco that it was scrapping the contract because stringent regulations enacted after the 2011 Fukushima Daiichi disaster have kept its nuclear plants off-line for 18 months.