Cluff Lake to shut down at turn of century

Saying that uranium prices are too low to sustain mining, Cogema Resources has moved up the anticipated closure of the Cluff Lake mine in northern Saskatchewan.

The mine is now expected to close at the end of 2000, three years ahead of the expected depletion of the Cluff orebody. The mine requires re-licensing for 1999 and 2000, and beyond 2000 would need another tailings disposal facility. Cogema says current prices and reserves mean the cost of a new tailings impoundment is uneconomic.

As part of the licensing process, regulators must examine Cogema’s plan to use the remaining capacity in the existing tailings impoundment for waste generated over the next two years.

Cluff has about 200 Cogema employees and about the same number of workers employed by contractors. The company intends to cut costs by reducing the workforce before the scheduled closing. Cogema also says its mine-site exploration programs will continue in the hope of proving up reserves that would justify the expense of a new tailings facility.

Cluff Lake has reserves of about 2 million tonnes grading 0.7% U3O8. Since startup in 1980, the mine has produced almost 23,000 tonnes of U3O8.