Cameco shuts big uranium mine after flooding
Date: 09-Apr-03
Country: CANADA
Cameco said the incident at the McArthur River mine occurred early Sunday when part of the mine collapsed, prompting it to temporarily evacuate all mine personnel. None of the mine's 275 workers was injured, it said.
Mining operations could be halted for two weeks, said the firm, which is the largest supplier of uranium to the western world's nuclear power plants.
The company has about nine months of uranium in inventory, representing "plenty of inventory that will cover the contracts" it has with buyers of the fuel, executives said.
They said the incident will not affect reserves in the long term, though Cameco may need to devise a new mining plan for that area.
Cameco said it did not know if McArthur River's annual production targets would be affected.
Last year, it produced more than 13 million pounds of uranium, or 82 percent of the company's overall output. The production target this year is 13 million pounds.
The firm is storing the water, flowing in at a rate of 2,000 gallons per minute, in "noncritical" areas of the mine. Pumping capacity at the mine is 550 cubic meters per hour, but the water is flowing in at about 50 cubic meters above that rate.
Cameco expects to take two weeks to build a concrete barrier to control the water inflow, and another two months to seal off the area.
Shares in the company, halted during the announcement, dropped C$1.50, or 3.8 percent, to C$38 on the Toronto Stock Exchange after the news was released.
