Creamer Media Login

Cameco may cut uranium output further, as prices stay low – CEO

28th February 2017

Font size: - +

WINNIPEG – Canada’s Cameco, the world’s second-biggest uranium producer, said on Tuesday it may not be finished cutting production as prices remain low after a major customer cancelled a supply contract.

Spot prices of uranium, used to fuel nuclear reactors, dipped to a 13-year low late last year and have rebounded only modestly in 2017. They have stayed stubbornly weak since a 2011 tsunami in Japan led to the shutdown of all the country’s nuclear reactors.

This month, Tokyo Electric Power Company Holdings (Tepco), the operator of the wrecked Fukushima nuclear plant, said it was scrapping its uranium supply contract with Cameco.

"2017 could make us look at changes to our inventory position, our production profile and our purchasing activity; all of those effects of the Tepco situation," Cameco CEO Tim Gitzel said at an investor conference in Florida.

Cameco “won’t be very compromising” in its legal position against Tepco, Gitzel said.

The Saskatoon, Saskatchewan based company said in January it would cut 120 jobs at three uranium mines in 2017. It reported lower-than-expected quarterly profit this month.

Cameco shares eased 0.8% in New York to $11.20 in morning trading.

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕