Cameco restarts production at McArthur River and Key Lake following four-year shutdown

Production was suspended at McArthur River and Key Lake for approximately four years beginning in January 2018 due to persistent weakness in the global uranium market. In February 2022, with a notable market improvement underway and an increase in long-term contracting activity adding significant volumes to our portfolio, Cameco announced the next phase of our supply discipline, which included the planned restart of both operations.

This initial production is a significant milestone for the operations and comes as the result of completing critical automation upgrades, maintenance readiness checks, and restaffing, recruitment and training for key positions at both facilities. There are now approximately 730 employees and long-term contractors working at the mine and mill – more than half being of Indigenous heritage – with additional hiring planned going forward. The sites will continue with final commissioning activities to ensure target production rates can be met and normal operating conditions are being achieved.

McArthur River/Key Lake are expected to produce up to 2 million lbs. (100% basis) of uranium concentrate (U₃O₈) in 2022. Starting in 2024, Cameco plans to produce 15 million lbs. of U₃O₈ (100% basis) per year from these operations, 40% below their annual licensed capacity, as part of our ongoing strategy to align our production decisions with our customers’ procurement needs.

Cameco president and CEO Tim Gitzel, said:

“McArthur River and Key Lake are among the best and most prolific uranium assets on the planet, and after building homes for these pounds in our long-term contract portfolio, we are delighted to have them back in production.”

“Market conditions have continued to strengthen since we announced their planned restart, with growing geopolitical uncertainty adding to energy security concerns worldwide, and the ongoing global emphasis on decarbonisation and electrification only gaining momentum.”

Read the article online at: https://www.globalminingreview.com/mining/10112022/cameco-restarts-production-at-mcarthur-river-and-key-lake-following-four-year-shutdown/