Key Lake is the world’s largest high-grade uranium mill. (Submitted photo/Cameco)

By Derek Cornet

uranium

Cameco announces start of production at Key Lake mill

Nov 10, 2022 | 5:00 PM

Cameco has announced the first pounds of uranium ore from the McArthur River mine have now been milled and packaged at the Key Lake mill.

According to a media release, it marks the achievement of initial production as these facilities transition to normal operations.

“McArthur River and Key Lake are among the best and most prolific uranium assets on the planet, and after building homes for these pounds in our long-term contract portfolio, we are delighted to have them back in production,” said Cameco president and CEO Tim Gitzel.

“Market conditions have continued to strengthen since we announced their planned restart, with growing geopolitical uncertainty adding to energy security concerns worldwide, and the ongoing global emphasis on decarbonization and electrification only gaining momentum.”

Production was suspended at McArthur River and Key Lake for approximately four years starting in January 2018 due to persistent weakness in the global uranium market. In February 2022, with a notable market improvement underway and an increase in long-term contracting activity adding significant volumes to its portfolio, Cameco announced the next phase of the supply discipline, which included the planned restart of both operations.

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There are around 730 employees and long-term contractors working at the mine and mill – more than half are of Indigenous heritage – with additional hiring planned going forward. The sites will continue with final commissioning activities to ensure target production rates can be met and normal operating conditions are being achieved.

McArthur River/Key Lake is expected to produce up to two million pounds of uranium concentrate in 2022 and starting in 2024, Cameco plans to produce 15 million pounds per year from these operations.

Cameco expects the return to production at McArthur River/Key Lake will lead to a significant improvement in its future financial performance.

The media release noted the COVID-19 pandemic and related supply chain challenges have the potential to impact the availability of materials, reagents and labour at McArthur River/Key Lake. That could not only impact 2022 production but could also introduce additional risk in 2023.

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derek.cornet@pattisonmedia.com

Twitter: @saskjourno