31 Oct (NucNet): The production startup date for the Cigar Lake mine in
northern Saskatchewan, Canada, is now expected to be 2011 at the
earliest, said Cameco Corporation, the world's largest uranium supplier.
In a statement today on its earnings for the third quarter of 2007, Cameco said it would be able to provide a firmer production startup date after the mine has been dewatered and the condition of the underground development assessed.
Cigar Lake, which was originally scheduled to begin operations this year and supply about one tenth of global consumption, flooded in October 2006 after a rockfall.
Draining and repairs to the mine, the world's biggest untapped source of uranium, are taking longer than forecast because of the need to dig a second shaft, Cameco said.
Cameco added that if actual events differ from its key assumptions, the production startup date may differ from the latest forecast of 2011. Cameco said it anticipates its share of Cigar Lake remediation expenses for 2007 will be 29 million Canadian dollars (30 million US dollars, 21 million euro).
The Cigar Lake project is a joint venture owned by Cameco (50%), Areva Resources Canada (37%), Idemitsu Canada Resources (8%) and Tepco Resources (5%).
In today's statement, Cameco reported increased net earnings for the third quarter of 2007 due to higher earnings in the uranium business driven by "significant increases" in the selling price and higher deliveries. It said fourth-quarter revenue will be squeezed by lower prices.
Related reports in the NucNet database (available to subscribers)
Construction Costs Up For Cigar Lake Uranium Mine Project (News in Brief No. 5, 19 March 2007)
Cameco To Apply For Cigar Lake Licence Extension (World Nuclear Review No. 28, 13 July 2007)
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