Cameco Corporation [NYSE: CCJ] declared that it has decided to resume the cigar lake uranium mine. The firm is intending to restart production in the mine in the same month. The cigar lake uranium mine of the firm is situated in northern Saskatchewan.
Reason of Shutdown
Earlier, the firm has terminated the work at a Cigar mine because of the increasing threats of the COVID-19 pandemic. Whilst the firm is also facing a decline in the availability of workers. Many of the individuals or workers were living in societies where travel constraints were imposed.
Safety Protocol against COVID-19
Furthermore, the firm stated that its top priority is the safety of its workers. Recently, the firm has started the implementation of safety protocols at cigar lake. The safety protocols include mask-wearing, a safe distance from one another, and improved sanitization. Additionally, the firm has also put a ban on eating areas.
Cameco disclosed that in the start it will closely monitor the COVID-19 case counts. Moreover, the firm will also work closely with regulators.
Production Rate after Restart
CCJ uncovered that currently, it is not in the position to disclose the production rate and the exact timing of the production. As per CCJ, the timing and rate are dependent on how quickly the firm will be able to remobilize the workforce.
Hence, the firm is not in a position to give updates to its outlook for 2021 until production has restarted. The largest shareholders of Cigar lake operations include Cameco which owned 50.025%. The second-largest shareholder is Orano Canada Inc which holds 37.1% interest in the lake operations.