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General Market Commentary
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General Energy
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General Market Commentary
Cameco extends uranium shutdown, withdraws outlook
Uranium mining major Cameco (TSX: CCO; NYSE: CCJ) is extending the temporary production suspension at its Cigar Lake mine in northern Saskatchewan as the effects of the global covid-19 pandemic persist, the company announced on Monday.
In late March, Cameco placed the Cigar Lake operation on care and maintenance for four weeks, during which it would assess the status of the situation and determine whether to restart the mine or extend the production suspension.
After taking several critical factors into consideration, including the precautions and restrictions put in place by the federal and provincial governments, the increasing significant concern among leaders in the remote isolated communities of northern Saskatchewan, and the challenges of maintaining the recommended physical distancing at fly-in/fly-out sites with a full workforce, the company determined that work at Cigar Lake would need to remain at its current reduced level for a longer duration, with the impact of covid-19 continuing to escalate.
As a result, Cameco said it will keep the facility in safe care and maintenance for an indeterminate period, and will monitor the situation on a continual basis to determine when a safe and sustainable restart is possible.
Ore from Cigar Lake is processed at Orano Canada’s McClean Lake mill, which was placed into care and maintenance last week.