More Delays at Cigar Lake Will Put Pressure on Uranium Price

Source:

Cameco, the world's top uranium producer, jumped a hurdle last week when it got a two-year permit extension for overhaul of its flooded Cigar Lake uranium mine in Canada, but analysts say the miner's forecasts of output by 2011 are too optimistic.

Cameco, the world's top uranium producer, jumped a hurdle last week when it got a two-year permit extension for overhaul of its flooded Cigar Lake uranium mine in Canada, but analysts say the miner's forecasts of output by 2011 are too optimistic.

With the mine expected one day to supply over 10 percent of the world's mined uranium, any further delays starting production would put upward pressure on uranium spot prices that have already hit a record high earlier this year.

"I don't know anybody that's betting 2011. I think a lot of people are expecting at least another year or two slip there," said one uranium trader. "I would say 2012 or 2013. Nobody thinks they can get it done in the time Cameco has outlined."

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