Study measures Cameco's economic contribution
August 16, 2006 (Port Hope, ON) --- An economic impact study shows direct spending in Port Hope by Cameco's uranium conversion facility and Zircatec Precision Industries totalled almost $63 million in 2005, accounting for 9% of the total economic activity in the Municipality of Port Hope during that year.
The study, commissioned by Cameco and prepared by Professor Harry Kitchen of the department of economics at Trent University, also shows direct and secondary spending by Cameco and Zircatec in 2005 on wages, salaries, purchases from local suppliers, and contributions to local charities totalled over $117 million for all of Northumberland County in 2005, accounting for 4% of regional economic activity.
Cameco also has a significant employment impact in Port Hope. The uranium conversion facility is the second largest employer in the municipality's manufacturing sector and Zircatec is the fourth largest. Combined, they employ 526 people directly and 164 additional person years indirectly through secondary job creation. Regionally, Cameco created 648 jobs directly and 759 person years indirectly in Northumberland County.
"The analysis shows Cameco is making a substantial contribution to the economy and local public finances," said Professor Kitchen. "The conversion facility and Zircatec's combined assessment accounted for 1.55% of Port Hope's taxable assessment in 2005 and 4.1% of the municipality's property tax revenue. Last year, Cameco and Zircatec paid a total of over $1.2 million in property taxes to Port Hope, the county and local school boards."
To further illustrate the importance of Cameco to the local property tax base, the economic impact study includes an analysis of how much new residential assessment or additional commercial assessment would be required to replace the property tax revenue that would be lost if Cameco relocated its facilities to another community or closed down. Port Hope would need an additional $27.3 million in commercial assessment or an additional $41.3 million in residential property assessment in order to replace the property tax revenue provided by Cameco's conversion facility and its Zircatec operation.
"This is the first time we have commissioned a detailed analysis of Cameco's impact on the local and regional economies. It was one of the ideas that came from the participants at the first community liaison forum in May," said Bob Steane, vice-president, fuel services division, Cameco Corporation. "We take our position as a major contributor to the local economy very seriously and as this study shows, we are playing a significant role in the prosperity of our community. We are committed to ensuring that continues."
Economic Impact Analysis (PDF 248 KB)
