After three years of shutdowns at its large McArthur River mine in northern Saskatchewan, Cameco says it will restart production this year and accelerate its output next year as the operations get back up to speed.
That was a big announcement for northern Saskatchewan in the year-end results for Cameco.
This is a sign of a sea change for the industry. The decision to curtail output is part of what the industry calls market discipline. It reduces production with an eye to raising prices.
Cameco now says the discipline paid off. It can now re-open McArthur and it will reward investors who supported the plan with a higher dividend, although it will continue to operate below full capacity.
As global political discussions on climate change continue to focus on carbon reduction, nuclear power is becoming a more attractive alternative. This, in turn, supports uranium mining activity.
Saskatchewan is one of the world’s largest suppliers of uranium, so, as world attitudes towards nuclear improve, Saskatchewan’s prospects improve as well. This recent announcement from Cameco is further evidence that the wind in the industry’s sails is getting stronger.
