January 17, 2017 8:37 pm
Updated: January 18, 2017 7:29 am

Cameco announces job cuts at Cigar Lake, McArthur River and Key Lake operations

Cameco's layoffs are a result of weakness and oversupply in the uranium market, according to the corporation's president and CEO.

File / Global News
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The workforce at Cameco’s McArthur River, Key lake and Cigar Lake uranium mining operations is expected to be reduced by about 10 per cent or 120 employees, according to a news release.

Affected employees will be offered packages that will include transition assistance, the release said.

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READ MORE: Cameco suspends Rabbit Lake mine production and cuts 500 jobs

Layoffs are planned to happen in stages and are slated for completion by the end of May 2017.

“We regret the impact of these decisions on affected employees and other stakeholders,” president and CEO Tim Gitzel said in a news release.

“These are necessary actions to take in a uranium market that has remained weak and oversupplied for more than five years.”

Gitzel said other producers announcing their intent to reduce supply is positive news, though an actual reduction has yet to be realized.

The Saskatoon-headquartered company expects to report a net loss for the 2016 fiscal year. Adjusted net earnings are anticipated between $180 million and $220 million after taxes.

READ MORE: Cameco Q2 loss of $137M fueled by low uranium prices, impairment charge

Changes are also coming to the air commuter service Cameco uses to fly its employees and contract workers to and from mine and mill sites in northern Saskatchewan.

Work schedules will also be altered for additional cost savings.

In 2016, Cameco delivered 31.5 million pounds of uranium at an average realized price of $54.46 per pound.

© 2017 Global News, a division of Corus Entertainment Inc.

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