Cameco Shuts Down Production At Two Saskatchewan Uranium Facilities, 845 Jobs ‘Temporarily’ Lost

The shutdown will last for at least 10 months.

Low uranium prices are being blamed for the shutdown of two uranium facilities in northern Saskatchewan.

The Key Lake and McArthur River sites are run by Cameco.

BNN reports that “The company also said it would cut its annual dividend to $0.08 per common share in 2018 from $0.40 and temporarily reduced its workforce at the operations by about 845 workers. The operations’ current workforce is 1,055.”

210 workers will remain on the job to monitor the sites while they are in shutdown mode.

Cameco CEO Tim Gitzel says there’s no reason to spend money on more production with uranium prices so low:

“There is no compelling reason at all for us to invest even a dime in any new production. If indeed the future is lower for longer, we want to be ready for that. Our obligation is to keep our company viable and sustainable for the long term, and that’s what we’re doing with this move.”

Uranium prices are down 70% since the Japanese Fukushima nuclear facility was hit by an earthquake and tsunami in 2011.

Cameco lost $124 million in Q3, a big change from their $142 million profit in Q3 of 2016.

Spencer Fernando

Photo – YouTube