Cigar Lake Owners Monitor Rising Uranium Prices

Friday, December 05, 2003 at 13:45



An official with Cameco says despite a significant increase in the price of uranium this year, more has to happen before the Cigar Lake project can be given the green light.


The Cigar Lake project has been on hold for years as Cameco and its partners have been waiting for the price to improve and regulatory approval to begin construction.


Lyle Krahn says the company hopes to get a construction licence approved by next year.


However, Krahn says despite the fact the price of uranium has increased 35 per cent since the start of the year to 13 dollars and 75 cents US a pound, they need to see it go even higher to offset the rise of the Canadian dollar.


Krahn says the price will likely have to remain at the 15- or 16-dollar mark before the company feels comfortable with going ahead with the project.


Krahn says even if the prices and the regulatory approval fall into place, it will be at least 2006 before the mine is operating.


When it does start production, the Cigar Lake mine is expected to create 200 full-time jobs, not including spin-off jobs.


The deposit near Cigar Lake contains some of the highest graded uranium in the world.