Cameco president and CEO Tim Gitzel. Photo courtesy of Cameco.
Cameco president and CEO Tim Gitzel says the company will look to Saskatchewan when it needs to ramp up production.
Speaking at an investors conference in Whistler, BC today, Gitzel predicts the world glut of uranium will end within the next few years — and within a decade, there will be a shortage.
He says the McArthur River mine in northern Saskatchewan is one of the best and most productive mines in the world and production could be ramped up very quickly.
“You know, it might take us a couple of years — but we can get up there relatively quickly, relative to any new production,” he says. “That’s why we like that one. We think that’s an ace for us.”
Earlier this month, Cameco announced it was cutting 120 jobs at its Cigar Lake, Key Lake and McArthur River mines because of the continued oversupply and low world prices for uranium.
In 2016, it shut down production at its Rabbit Lake mine, resulting in 500 job losses.
Next month, the company will release its year-end financial statements which are expected to show higher than anticipated losses.
Cameco is also in the midst of a $2-billion tax fight with the Canada Revenue Agency, but Gitzel is confident the company will win. The court case started last fall and will resume in a couple of weeks. A decision could be a year and a half away.