AREVA > Home > News Releases > June 4, 2004 

NEWS RELEASE

For Immediate Release: June 4, 2004

Saskatoon, Saskatchewan, Canada

McClean Lake ruling overturned on appeal

In a unanimous decision, the Federal Court of Appeal has overturned the September 2002 decision of the Trial Division that quashed the original federal operating licence of the McClean Lake uranium mining and milling facilities.

In making this decision, the Court of Appeal agreed with arguments by AREVA subsidiary COGEMA Resources Inc. and the Canadian Nuclear Safety Commission (CNSC) that the mine's licence was properly obtained despite changes in federal laws while the licensing and environmental review was under way.

The position of the CNSC and COGEMA Resources was supported during the appeal hearing on May 3 and 4 by submissions from the Government of Saskatchewan and from northern people and businesses represented by the Lac La Ronge Indian Band, Kitsaki Development Limited Partnership and Northern Resource Trucking.

"McClean Lake is our flagship operation and we are proud of its exemplary environmental performance," said Tim Gitzel, Chairman of COGEMA Resources and Director of AREVA's Mining Business Unit.

"This court case was about the interpretation of federal laws, not our mining and milling operation. Unfortunately, the case cast a false and unfair shadow on the project and caused a great deal of needless uncertainty for the people and businesses that depend on the mine for their livelihoods. We're exceedingly pleased to have this issue resolved."

The actual performance of McClean Lake, which has consistently bettered regulatory requirements since it began operating five years ago, was not a factor in the case.

The earlier ruling found that, although the project had already undergone an extensive environmental assessment and was granted a licence by the appropriate authorities, an additional assessment was required under the Canadian Environmental Assessment Act (CEAA), which came into force in 1995. The original assessment had been under way for four years under the previous legislation prior to the enactment of the CEAA.

Gitzel said the Federal Court of Appeal's ruling will clear up uncertainty around several other projects that were licensed under the same circumstances as the McClean Lake operation. It should also help restore industry confidence in Canada's environmental and licensing review processes, he added.

More about
COGEMA Resources is the operator and majority owner of the McClean Lake uranium operation located about 700 kilometres northeast of Saskatoon. The company also owns and operates the Cluff Lake mine (now awaiting decommissioning approval) operates the Midwest uranium project, and owns shares of the Cigar Lake, McArthur River and Key Lake uranium mines. About half of the workers at McClean Lake are residents of northern Saskatchewan. COGEMA Resources is a subsidiary of AREVA, a worldwide expert in the energy field.

backgrounder