Objectives & Results

Business Review

Business Review

Objectives & Results

vision

Cameco will be a dominant nuclear energy company producing uranium fuel and generating clean electricity.

2008 Objectives 2008 Results 2009 Objectives
safe, healthy and rewarding workplace
  • Strive to achieve no lost-time injuries at all Cameco-operated sites and, at a minimum, maintain a long-term downward trend in the combined (employee and contractor) injury frequency and severity, and radiation doses.
  • Overall safety performance was better in 2008 compared to 2007 and good progress was made in implementing the contractor management program for Canadian sites. Cameco's year-end combined lost-time frequency for employees and contractors was 0.5 per 200,000 hours worked (compared to a target of 0.8). Year-end severity was also lower than target.
  • Strive to achieve no lost-time injuries at all Cameco-operated sites and, at a minimum, maintain a long-term downward trend in the combined (employee and contractor) injury frequency and severity, and radiation doses.
  • Implement Cameco's systematic approach to training by the end of 2009.
clean environment
  • Incur no significant environmental incidents at any Cameco-operated sites and, at a minimum, establish a downward trend in the frequency and severity of environmental incidents.
  • Integrate environmental leadership into corporate management systems, major projects and key corporate programs. Establish key performance indicators in the five performance areas and continue to develop a system to measure, track and report performance.
  • The total number of reportable environmental incidents in 2008 was 29, higher than the 2007 total of 23. The most significant issues were the discovery of soil and groundwater contamination at Cameco's conversion operation at Port Hope, Ontario, and the slow pace of wellfield reclamation at the Smith Ranch-Highland operation in Wyoming. These issues had no significant environmental impact, but emphasized the need for more vigilance in operating older facilities.
  • Progress was made identifying short-term environmental leadership plans at Cameco's business locations. Scorecards are now in place for all business locations, and sites are now measuring, tracking and reporting performance based on standard indicators.
  • Strive to achieve zero reportable spills in all jurisdictions where we operate. Reduce the frequency of environmental events and incur no significant events at all Cameco-operated sites.
  • With the goal of reducing energy consumption at all Cameco business locations, develop and begin to implement energy management action plans at all Canadian mining and milling operations and complete energy assessments at all remaining North American operations.
supportive communities
  • Build awareness of and support for Cameco in the communities impacted by our operations through community relationships and/or business development programs. Expand and establish a benchmark corporate trust rating in communities impacted by our ISR operations in the US and Kazakhstan.
  • Develop and implement a corporate office recruitment strategy to increase the employment of aboriginal people. Begin to implement a multi-year strategy aimed at increasing the recruitment and retention of a northern Saskatchewan workforce.
  • In Saskatchewan, public support for uranium mining remained strong at 82%. In Port Hope, Ontario, 79% of residents support the continuation of activities at Cameco's conversion facility. At our US operations, support levels were 89% in Wyoming and 65% in Nebraska. In Kazakhstan, support is stronger in the cities at 54% versus 44% in rural areas.
  • The number of aboriginal people employed at head office increased by 18% during the year. A new northern workforce strategy planning committee started in 2008 will further advance this initiative.
  • Build awareness and support for Cameco in the communities impacted by our company through community investment, business development and public relations, and improve levels of support in these jurisdictions.
  • Finalize and begin implementation of an enhanced northern Saskatchewan strategy focused on workforce development, business development, community relations and government and regulatory affairs.
outstanding financial performance
  • Pursue additional growth opportunities in the nuclear fuel cycle.
  • Achieve combined unit-operating costs within budget.
  • Produce 20.6 million pounds of U3O8.
  • Achieve uranium sales targets of between 31 million to 33 million pounds U3O8.
  • Dewater the Cigar Lake mine, begin underground remediation and continue the development of surface facilities and infrastructure.
  • Restart the Port Hope UF6 plant by the third quarter at the earliest.
  • Continue brownfield exploration efforts to identify additional McArthur River and Rabbit Lake/Eagle Point reserves and expand greenfield exploration in prospective basins. Advance the development and assessment of the Millennium and Tamarack uranium deposits.
  • Cameco acquired a 24% interest in GLE and a 70% interest in the Kintyre uranium exploration project in Western Australia.
  • Budget was exceeded due to increased costs and decreased production.
  • Cameco's share of U3O8 production in 2008 was 17 million pounds.
  • 2008 U3O8 sales exceeded our objective with 34.1 million pounds sold.
  • The October 2006 inflow source was successfully sealed and dewatering began in July. Dewatering efforts were stopped in August after a subsequent water inflow in another area of the mine. All of the planned surface work for 2008 was completed.
  • The Port Hope UF6 plant was restarted at the end of the third quarter. A limited and uncertain supply of HF caused by a contract dispute, shut the plant down again in December.
  • Brownfield exploration projects continued at McArthur River and Rabbit Lake. Several new projects in Australia and Mongolia were added to the exploration portfolio. Feasibility study work continued on the Millennium project.
  • Advance development of Kintyre by initiating environmental baseline work and conducting confirmatory drilling.
  • Achieve combined unit-operating costs within budget.
  • Produce 20.1 million pounds of U3O8 and 8 to 12 million kgU from fuel services.
  • Identify, develop and evaluate opportunities for economic growth in uranium supply within the three- to eight-year time frame.
  • Advance Cigar Lake mine remediation, including sealing of the August 2008 water inflow area.
  • Achieve an average mineral reserve and resource replacement rate through brownfield or greenfield exploration programs, joint ventures and acquisitions that is, over the last three years, at least equal to total annual U3O8 production from all facilities.
  • Pursue future additional tailings capacity at Rabbit Lake and Key Lake by submitting to regulators a project description, completing pre-feasibility study work, conducting environmental baseline studies and community consultations, and initiating the environmental assessment process.
Copyright © 2009 Cameco Corp.