TORONTO (miningweekly.com) – The world's biggest producer of uranium, Cameco Corporation, has temporarily suspended the production of uranium hexafluoride at its Port Hope plant, in Canada, as it seeks to resolve a dispute with its hydrofluoric acid supplier.

First-half deliveries in 2009 are still expected to be met.

The company had indicated earlier that it was in a contract dispute with its only supplier of acid, and said on Friday that it has now exhausted an inventory of the material, which had been purchased on a spot – and pricier – basis.

The company is trying to resolve the dispute, and is also in other talks with other suppliers to broaden its sources of hydrofluoric acid.

Still, while the uncertainty remains, uranium processing will be suspended at Port Hope until the second half of 2009.

The company expects to retrench some of the 440 workers at the plant, but said the decision will affect "less than 100" employees.

Some refurbishment and maintenance work will be carried out while production is suspended.

Cameco only restarted uranium hexafluoride production at Port Hope in September, after the plant was shut down for 14 months so the company could repair and clean-up underground leaks, which had resulted in soil and groundwater contamination.

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