- Uranium supplier, Cameco (TSX:CCO) has suspended operations at its Ontario-based uranium plant, due to staffing problems caused by COVID-19
- The site will be shut down for an estimated four-week period and staffing levels at the site will be halved
- Consequently, this will cause the Blind River Refinery, which processes the plant’s uranium, to also temporarily suspend operations
- At this point, the company believes it is too early to say how this will affect expected production in 2020
- At the previous market close, Cameco (CCO) was trading at C$12.62, with a market cap of $4.99 billion
Uranium supplier, Cameco (TSX:CCO) is suspending operations at its plant in Ontario, due to staffing problems caused by COVID-19.
The province’s recommended COVID-19 safety measures have limited the company’s ability to maintain staffing levels at the uranium plant.
Cameco stated that the plant is designed to run continuously, which it is unable to do with current staffing and screening protocols.
As result, the site is being shut down for four weeks and the site’s staff will be temporarily halved.
Consequently, this will cause the Blind River Refinery, which processes the plants uranium, to also temporarily suspend operations.
However, while the plant and refinery are stood down, the sites will still be able to receive planned uranium shipments. Furthermore, the company’s energy services will remain ongoing as they are classified essential.
CEO of Cameco, Tim Gitzel, stated that staffing the sites has become increasingly challenging over the past couple weeks.
“The UF6 plant is designed for continuous operation, and we need to prevent unplanned interruptions arising from personnel shortages.
“Therefore, after weighing many factors, including the state of the pandemic, we made a measured decision to suspend production in a careful, planned manner at the UF6 plant and the UO3 refinery which feeds it,” he said.
Tim went on to say that the company is closely monitoring the ever-evolving situation, before making any further decisions.
This latests news arrives just one day after the company announced that reductions in Kazakhstan’s uranium output this year will likely effect Cameco’s supply chain.
Despite both of these significant events, Cameco stated that is it still to soon to estimate any potential reductions in its previous 2020 forecast.
At the previous market close, Cameco (CCO) was trading at C$12.62, with a market cap of $4.99 billion.