|Cameco Corporation - CCO.t is one of the world's largest uranium producers accounting for about 15% of the world's production from its mines in Canada, the US and Kazakhstan.|
Cameco holds premier land positions in the world's most promising areas for new uranium discoveries.
"Cameco (TSX: CCO; NYSE: CCJ) announced today that it is suspending production at its Rabbit Lake operation in northern Saskatchewan and production is being curtailed at Cameco Resources’ US operations by deferring wellfield development. The changes are expected to result in a reduction of about 500 positions at Rabbit Lake and about 85 at the US operations, including employees and long-term contractors.
“We regret the impact these decisions will have on many of the talented and dedicated people working at these operations and on their home communities,” said Cameco president and CEO Tim Gitzel. “Unfortunately, continued depressed market conditions do not support the operating and capital costs needed to sustain production at Rabbit Lake and the US operations. These measures will allow us to continue delivering value to Cameco’s many stakeholders and support the long-term health of our company. We will provide assistance to those affected by these decisions.”
Cameco and its US subsidiaries are working with employees at the affected operations to ensure a safe and orderly implementation of the decisions. The Rabbit Lake operation will be placed in a safe care and maintenance state allowing Cameco the option to resume production when market conditions significantly improve. Cameco will offer affected employees exit packages. Where possible, the company will consider alternatives such as relocation to other Cameco facilities and job sharing options as part of its effort to minimize the impact on people and surrounding communities. A workforce of about 150 people will be required to maintain the facilities and sustain environmental monitoring and reclamation activities at Rabbit Lake. Work to transition the operation to care and maintenance will begin immediately and is expected to be completed by the end of August 2016. Workforce adjustments will occur over the next four months.