Cameco limits underground mining at Rabbit Lake after rock fall

Cameco limits underground mining at Rabbit Lake after rock fall

Rabbit Lake, which opened in 1975, is the longest operating uranium production facility in North America, and the world's second largest uranium mill. (Image courtesy of Cameco)

Canadian uranium producer Cameco (TSX:CCO)(NYSE:CCJ) said on Thursday it has restricted underground mining and removed staff from its Rabbit Lake operation in Saskatchewan, following a rock fall in an inactive area of Eagle Point mine that was reopened.

The miner, which is the world’s second-largest uranium producer, said it has suspended production at Eagle Point while an assessment is completed, but noted the Rabbit Lake mill continued operating as usual.

There were no injuries and no impact on the environment, the company said.

Rabbit Lake is expected to meet a 2015 production target of 3.9 million pounds of uranium concentrate by processing ore previously mined, according to Cameco.

The mine, which opened in 1975, is the longest operating uranium production facility in North America, and the world’s second largest uranium mill, employing about 600 people, including contractors.

Cameco has notified the Canadian Nuclear Safety Commission and Saskatchewan Mines Inspector and will provide a further update once the assessment is complete.