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Saskatoon, Saskatchewan, Canada, August 3, 2000
Cameco Corporation today announced an extension to the temporary shutdown of mining activities at the Rabbit Lake uranium operation, resulting in an approximate one-year shutdown of the Rabbit Lake mill, beginning in the first quarter of 2001.
Cameco has re-evaluated the mining plan at the Rabbit Lake Eagle Point mine to achieve further efficiencies by introducing some changes to the mining method. In 2001, Cameco will seek regulatory approval to reopen the Rabbit Lake operation based on the revised mining plan for the remaining approximately 20 million pounds of reserves at Eagle Point.
The Rabbit Lake mill will operate on existing stockpiles until they are depleted, about the end of the first quarter of 2001. At that time the mill will be placed on standby. Subject to market conditions and the receipt of regulatory approvals, Cameco anticipates restarting the Rabbit Lake mill in the first quarter of 2002, shortly after mining activities resume.
Today's announcement follows a previous decision by the company to suspend mining activities at Rabbit Lake from 1999 to 2001 and to reduce annual mill production at Rabbit Lake from 12 million to 7 million pounds U3O8 during that time.
"Given the continuing low spot market price for uranium, these measures allow Cameco to defer mining and milling expenditures, retain flexibility to respond quickly to the need for increased production and minimize the impact on Rabbit Lake employees," said Bernard Michel, Cameco's chair and chief executive officer.
During the extended shutdown, it is expected that between 30 and 50 of the 150 Cameco employees at Rabbit Lake will be retained for care and maintenance and environmental activities at the facility. The remaining 100 to 120 employees will be laid off temporarily with an anticipated recall date in early 2002. No Rabbit Lake positions are expected to be eliminated as a result of today's announcement. A number of programs designed to ensure the availability for startup of the skilled Rabbit Lake workforce are currently under consideration.
While the Rabbit Lake milling facility is off line, Cameco will guarantee security of supply to its customers with production from its other uranium facilities as well as from the drawdown of the company's inventories.
The Rabbit Lake operation is located in northern Saskatchewan about 700 kilometres north of Saskatoon. It is owned 100% by Cameco.
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.
Forward-Looking Statements
Certain statements in this report to shareholders constitute forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cameco or of the uranium or gold business to be materially different from future results, performance or achievements expressed or implied by those forward-looking statements. These factors are discussed in greater detail in Cameco's most recent annual information form and management's discussion and analysis on file with the Canadian provincial securities regulatory authorities and the United States Securities and Exchange Commission.
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For further information, please contact:
| Elaine Kergoat Manager, Media & Public Relations Cameco Corporation Phone:(306) 956-6315 Fax:(306) 956-6318 |
Alice Wong Director, Investor & Corporate Relations Cameco Corporation Phone:(306) 956-6337 Fax:(306) 956-6318 |