Cameco shares up after Kazakhstan plans uranium production cuts

Strike-lockout interrupts production at two Saskatchewan uranium facilities.
Shares in Saskatoon-based Cameco up after Kazakhstan plans uranium production cuts. File / Global News

Shares of Canadian miner Cameco Corp. (TSX:CCO) soared in trading Monday after a rival uranium producer announced plans to cut production.

Kazakhstan’s state-owned Kazatomprom announced it plans to reduce uranium production by 20 per cent for three years, starting in January.

READ MORE: Cameco shuts down production for 10 months at 2 Sask. sites, 845 jobs affected

Kazakhstan is one of the world’s largest uranium producers.

Shares of Saskatoon-based Cameco were up $1.69 at $13.73 in afternoon trading. The stock hasn’t closed above $14 since late April.

Uranium prices have struggled since the earthquake and tsunami that caused the Fukushima Daiichi nuclear disaster in Japan in 2011.

Cameco announced plans last month to temporarily suspend operations at its McArthur River mine and Key Lake milling operation in Saskatchewan by the end of January.