Cameco To Shut Down McArthur River Mine Over Strike Notice - Update

(RTTNews) - Canadian uranium producer Cameco Corp (CCJ, CCO.TO), Wednesday initiated a shutdown of its McArthur River mine and Key Lake mill operations in response to a strike notice from the United Steelworkers union.

Cameco, which has ceased production at the sites, said the union informed the company of plans to begin strike action, effective August 30. In response, Cameco issued a lockout notice effective the same date to assure a safe shutdown of its facilities. In the meantime, Cameco is continuing to meet with the union.

The work stoppage involves about 535 unionized employees at the two operations. Contract negotiations began in November 2013 after the previous four-year contract expired December 2013. In July, the company and union jointly applied for conciliation under the Canada Labour Code.

Cameco, based in Saskatoon, Saskatchewan said a labor disruption is not expected to affect its 2014 uranium delivery commitments to customers. The company may rely on other supply sources including primary production, and existing purchase commitments and inventories.

The announcement of the shutdown by Cameco comes at a time when spot prices of uranium continue to fall.

Cameco stock is trading at $19.56, down $0.43 or 2.18%, on the NYSE. In Toronto, the stock is trading at C$21.21, down C$0.70 or 3.19%.