in the news
Globe says Cameco's Cigar Lake mine now up the creek
2006-10-24 08:57 ET - In the News
The Globe and Mail reports in its Tuesday, Oct. 24, edition that severe and sudden flooding at an unfinished uranium mine has sent owner Cameco reeling. The Globe's John Partridge writes the Northern Saskatchewan Cigar Lake mine would produce about 17 per cent of world uranium production. Shares of the Saskatoon-based company, the world's largest producer, closed down 9.3 per cent, after disclosing the flooding will delay mine construction for "at least a year." The flood-induced delay is expected to fuel an increase in world uranium prices, which have soared more than fivefold since the end of 2002. Past price increases have been a result of a growing gap between demand and supply. Cameco said a rock-fall on Sunday triggered a massive flow of water into the site. The mine is forecast to produce 18 million pounds of uranium per year at full capacity. Cameco is entitled to half of the production. Cameco originally thought it had contained the water, however, after asking for a halt in trading, disclosed that it had been forced to evacuate all personnel and let the site flood. Cameco fell $4 on the Toronto Stock Exchange, to $38.95, on Monday