[en] Production of uranium in Canada began in the 1940s to supply the needs of US weapons development. After 1966 a growing demand for uranium for nuclear power production stimulated exploration, and since then the health of the Canadian uranium industry has been tied to the state of the nuclear power industry. Uranium exploration in Canada is carried out mainly by private enterprise, although the federal and two provincial governments compete through crown corporations. Seven companies produce ore, and six have processing plants. Expansion is underway at several existing operations, and some new projects are underway. The industry is strongly dependent on export markets; only about 15 percent of Canadian production is used in the country. There is one uranium refinery which produces UO₂ powder for CANDU reactor fuel and UF₆ for export. The uranium hexafluoride facility is being expanded. Federal government policy affects the uranium industry in the fields of regulation, ownership, safeguards, protection of the domestic industry, and international marketing. The short-term outlook for the industry is deteriorating, with declining uranium prices, but prospects seem considerably brighter in the longer term. Canada has about 12 percent of the world's uranium reserves, and is the second-largest producer. Discovery potential is believed to be excellent