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.
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.