Cameco Mothballs Uranium Plants, Cuts 845 Jobs

(RTTNews) - Canada's largest uranium producer Cameco is planning to cut back uranium production to contain losses and to shut down two facilities in northern Saskatchewan. The temporary shut down of Key Lake and McArthur River for 10 months will result in 845 job cuts by the end of January from its total headcount of 1,055 employees.

The company also revealed its plan to reduce annual dividend to C$0.08 per common share for 2018 from C$0.40. The company is expected to provide further details of the shutdown by February, along with its fourth quarter results.

The company has been under pressure due to a drastic price drain after an earthquake and tsunami in Japan's Fukushima nuclear facility in 2011 and subsequent shutdown of nuclear facilities in Japan. Earlier in April 2016, the company has suspended the operations in Rabbit lake by slashing down 500 positions.

Last month, the company reported a loss of C$123.71 million for the third quarter, compared to profit last year.