Cameco issues lockout at its McArthur River mine and Key Lake mill operations
In response to strike action commenced by the United Steelworkers on Saturday, Cameco (NYSE:CCJ) issued a lockout notice at its McArthur River mine and Key Lake mill operations.
The world's largest uranium miner said the work stoppage involves approximately 535 unionized employees at the two operations. Notice of the strike came on Wednesday. Over the last five days, Cameco has dropped 1.81%.
"The union has advised Cameco of its intention to commence strike action, effective 12:01 a.m. on August 30, 2014," said the company in a statement.
"In response to the strike notice, Cameco issued a lockout notice effective 12:01 a.m. on August 30, 2014 to assure a safe and orderly shutdown of its facilities. Cameco is continuing to meet with the union during the 72-hour notice period."
Contract negotiations began in November 2013. The previous four-year contract expired December 31, 2013. In July, the company and union jointly applied for conciliation under the Canada Labour Code.
Cameco says the labour disruption is not expected to affect the company's 2014 uranium delivery commitments to customers.
The company says it can draw on a variety of supply sources including primary production, as well as existing purchase commitments and inventories.