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AREVA > Home > News
Releases > August
20, 1998
NEWS RELEASE
For Release: 2 p.m., August 20,
1998
COGEMA CLUFF MINE TO SUSPEND
OPERATIONS DECEMBER, 2000
COGEMA Resources Inc.,
the owner and operator of the Cluff Lake uranium project located
720 kilometres north of Saskatoon, today announced that operations
at the Cluff Lake mine will be suspended indefinitely as of December
31, 2000. Operations to that date are subject to obtaining the necessary
licensing and permission to fully utilize the capacity in the existing
tailings management facility.
We have informed our
employees at the mine sites and in Saskatoon today of our decision,"
said COGEMA Resources Inc. President and CEO Arnaud de Bourayne.
"We are giving them as much advance notice of this decision
as possible."
The reasons for this
decision are economic:
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The current market price for uranium
cannot sustain the Cluff Lake operation in its present form.
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The mine in its current form is
only marginally economic.
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The mine under current economic
conditions does not have the reserves to support the investment
to create a new tailings management facility, which will be required
after the year 2000.
COGEMA Resources will
continue an aggressive exploration program in the area to better
assess the uranium potential of the Cluff Lake region. If the results
of this resource assessment are positive, and in light of market
conditions, COGEMA Resources will conduct a re-engineering of the
mining of these resources taking into account increasingly stringent
conditions. This re-engineering would include the long-term tailings
issue, with the goal being to improve the economy of the mine.
"Our current focus
will be on re-licensing Cluff Lake for the years 1999 and 2000.
Operations at Cluff Lake will continue at a production rate of 2
to 3 million pounds U3O8 (yellowcake) per
year," said Tim Gitzel, Senior Vice President & Corporate
Counsel. "During the suspension of operations, a small crew
will be maintained to monitor the facilities and to safeguard the
environment. As well, facilities not required for future re-start
of operations will be decommissioned."
About 200 COGEMA Resources
employees will be affected along with 200 permanent contractor employees.
A reduction in the workforce will be required in the short term
to ensure the viability of the operations over the next two years.
Headquartered in Saskatoon,
COGEMA Resources Inc. operates mining and milling facilities at
Cluff Lake in northern Saskatchewan. COGEMA Resources is also operator
and majority owner of the McClean Lake and Midwest uranium projects,
and part owner of the Cigar Lake and McArthur River uranium mines.
Of the company's 530 employees in Saskatchewan, 45% are from northern
communities.
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For further information
please contact:
Tim Gitzel
Senior Vice President & Corporate
Counsel
COGEMA Resources Inc.
Phone:(306)
343-4501
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