Cameco is extending the suspension of production at McArthur River and Key Lake “for an indeterminate duration”, CEO Tim Gitzel announced yesterday. The Saskatchewan operations have been out of production since January.
Gitzel’s announcement accompanied Cameco’s second quarter results, which Gitzel said reflected the impact of a weak uranium market and actions taken by the company aimed at increasing long-term shareholder value.
“We continue to expect to generate strong cash flow this year as we draw down inventory and focus on operating efficiently. However, we have not seen the improvement needed in the uranium market to restart McArthur River and Key Lake,” Gitzel said.
“This means we will extend the suspension of production at McArthur River and Key Lake for an indeterminate duration.”
Gitzel said the decision had been a difficult one, since it will result in the permanent layoff of about 550 site employees, including those temporarily laid off since January, as well as a reduction of about 150 positions at the company’s corporate offices. A reduced workforce of around 200 employees will remain at the McArthur River and Key Lake sites to keep the facilities in a state of safe care and maintenance. Cameco’s share of the care and maintenance sites are expected to be between CAD5-6 million per month once the layoffs take effect.
World Nuclear News – July 26, 2018.
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