Uranium major Cameco (TSX:CCO, NYSE:CCJ) has resumed full production at its Key Lake Mill and MacArthur River mine in northern Saskatchewan after regional flooding disrupted supply routes.
Logistics disruption was caused by the partial collapse of the Smoothstone River Bridge due to high water levels.
While Cameco’s mining and milling facilities were not directly surrounded by flood waters, the bridge served as the primary transportation route to haul critical operational supplies for both operations. Delivery was further hampered by weight and traffic restrictions imposed on the alternative secondary road route.
Cameco said it had bypassed the damaged bridge infrastructure by routing freight volumes through the secondary road system.
“We are in regular contact with the Saskatchewan Ministry of Highways, and while the timing of restoring access to our primary supply route is still being confirmed, we are now able to continuously deliver the volume of critical materials needed to resume full operations at Key Lake and MacArthur River using the secondary route,” the company said. said in a statement.
Management noted that seasonal weather conditions continue to present operational risks to the supply chain.
“However, as is the case every spring, there remains a risk that continued thawing and precipitation events could result in road closures, which could delay the delivery of critical operational materials to our sites in the future,” the company said.
Cameco’s Cigar Lake mine was not affected by flooding and maintained normal production during the transportation disruption.
The company confirmed that its 2026 consolidated production outlook remains unchanged at 19.5 million to 21.5 million pounds of U3O8. Additionally, the temporary production stoppage at the Key Lake Processing Plant and the reduction in mining activities at McArthur River have resulted in no change to the annual production target for the combined operation.
The restart has stabilized supply lines from the province, which has reported US$12.8 billion in total mineral sales for 2025, representing a 19 per cent increase year-on-year. Uranium sales within the province increased 24 per cent to an industry record of US$3.2 billion, exceeding provincial targets outlined in the 2030 Development Plan for the second consecutive year.
Saskatchewan is expected to contribute US$6.7 billion in mineral resource development expenditure in 2025, accounting for 25 per cent of total national expenditure in Canada. The province also generated more than 16 percent of total Canadian spending on mineral exploration.
The province is currently attempting to diversify its industrial mineral base through uranium and potash. Targeted Mineral Exploration IncentiveWhich funded 34 different projects last year.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
