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31. Joint operations

Cameco conducts a portion of its exploration, development, mining and milling activities through joint operations located around the world. Operations are governed by agreements that provide for joint control of the strategic operating, investing and financing activities among the partners. These agreements were considered in the determination of joint control. Cameco’s significant Canadian uranium joint operation interests are McArthur River, Key Lake and Cigar Lake. The Canadian uranium joint operations allocate uranium production to each joint operation participant and the joint operation participant derives revenue directly from the sale of such product. The participants in the Inkai joint operation purchase uranium from Inkai and, in turn, derive revenue directly from the sale of such product to third-party customers. Mining and milling expenses incurred by joint operations are included in the cost of inventory.

Cameco reflects its proportionate interest in these assets and liabilities as follows:

  Principle place
of business
Ownership 2013 (Revised – note 3)
Total assets        
McArthur River Canada 69.81% $1,034,095 $1,018,089
Key Lake Canada 83.33% 626,090 618,821
Cigar Lake Canada 50.03% 1,370,476 1,086,565
Inkai Kazakhstan 60.00% 323,404 288,088
      $3,354,065 $3,011,563
Total liabilities        
McArthur River   69.81% $51,094 $55,517
Key Lake   83.33% 149,263 156,400
Cigar Lake   50.03% 55,718 55,673
Inkai   60.00% 170,134 159,674
      $426,209 $427,264

Through unsecured shareholder loans, Cameco has agreed to fund the development of the Inkai project. Cameco eliminates the loan balances recorded by Inkai and records advances receivable (notes 11 and 32) representing its 40% ownership interest.