The restart of production at the McArthur River mine and Key Lake mill, in Saskatchewan, after a multi-year shutdown is a welcome development and helps to reduce uncertainty about the industry’s plans in the region, Orano Canada CEO Jim Corman said on Wednesday.

He was responding to an announcement from Cameco, the majority owner of the mine and mill, that production would be restarted, at five-million pounds this year, ramping up to 15-million pounds a year by 2024.

Cameco CEO Tim Gitzel, however, stressed that the return of production from McArthur Lake, did not signal an end to supply discipline and that production would continue to be limited at key Canadian uranium operations.

By 2024, Cameco would continue to operate at 40% below its productive capacity, compared with the sub-75% level of 2021.

“This will remain our production plan until we see further improvements in the uranium market and have made further progress in securing the appropriate homes for our encumbered, in-ground inventory under long-term contracts . . .,” Gitzel said.

Once McArthur River and Key Lake achieve their planned production level in 2024, Cameco would reduce production at Cigar Lake, from the 18-million pounds a year to 13.5-million pounds a year. That is 25% below its licensed capacity.

The revised production plan for Cigar Lake, which is a joint venture between Cameco, Orano, Idemitsu and Tepco Resources, is intended to extend the mine life of the operation, allowing for a continuous supply of ore for the McClean Lake mill, said Orano CEO Nicolas Maes.

“Given the continued unbalanced uranium market conditions, the restart of McArthur gives us the opportunity to reduce production at Cigar Lake, extending the life of this asset and postponing the need for new projects in northern Saskatchewan,” he stated.

Corman added that the group was optimistic about the longevity of the uranium industry in Saskatchewan.

“Following on the heels of our approval to expand the tailings management facility at McClean Lake, we now have a solid plan for uninterrupted production. For our employees, contractors and partners, this announcement reduces some of the uncertainty about industry plans in the region.”

Orano has a 30.2% interest in McArthur River and a 16.7% stake in Key Lake.