Reactor activity fueling demand for uranium: at the end of last year the 437 nuclear reactors operating around the world were responsible for 16 per cent of worldwide electricity production.

Uranium mined in Saskatchewan provided about one-third of the fuel for those reactors. Clearly this province is a major stakeholder in the growing nuclear industry.

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"Nuclear reactors are being built around the world," Saskatchewan Mining Association Uranium Section Chairman Al Shpyth says. "Contrary to popular myth there is a fair bit of new activity, which is all good news to our industry."

In Asia--Japan, Korea and Taiwan--there are 22 reactors either under construction or planned. Six more are planned and under construction in China. Finland will soon be home to the first new reactor build in Europe in 20 years. There is renewed interest in building a reactor in the United States, also the first in 20 years. The Brazilians are looking at one. Three reactor restarts were completed in Ontario last year with the potential for five more. All together, 33 new reactors are under construction and 28 more are in development.

"Nuclear power is reliable, clean and reasonably priced," Shpyth declares. "It's no wonder there's a renewed interest in the benefits of nuclear as a clean energy option."

Greater demand for nuclear power steadied the uranium spot price in 2003 and nourished a good year in Saskatchewan's uranium industry. Yet 2003 will undoubtedly be remembered as the year of the water inflow at McArthur River.

April, May and June were agonizing months for the industry as water forced the suspension of mining operations at McArthur River. A great number of people worked extremely hard to find ways to respond to the incident, Shpyth says, and production resumed ahead of schedule in early July.

"It was a very significant effort by the people at the site and by the companies involved," he says, also acknowledging what he sees as "a real feature of the industry at large" in that potash producers and other members of the industry pitched in to help.

Uranium mining and milling has long been a safety leader in an industry recognized as one of the safest to work in across Saskatchewan. Three uranium operations won safety awards with zero accidents in 2003, matching a commitment to safety that saw Saskatchewan mines win the national award for safest metal mine in Canada four of the last five years.

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"Companies have safety management systems to formally manage their efforts in not only complying with legislation and regulations, but going beyond to continually make the workplace safer," Shpyth says, adding companies have been responsive to employee surveys and extended their efforts to include "wellness for the whole person" at home and at work.

The industry has systems in place that bring a focus to not only correcting the causes of accidents but also to preventing accidents. They do this by delving deep into accident statistics, specifying the areas where accidents occur and interpreting their root causes.

"The sector recently participated in a safety culture symposium with others in the nuclear industry and the Canadian Nuclear Safety Commission," Shpyth says. "There is great interest in taking our good working model to a higher order and moving toward an examination of attitudes and behaviors regarding safety."

Two major projects in very different directions are on the horizon for Saskatchewan's uranium industry. One is the ramping up toward a producing uranium mine at Cigar Lake and the other is the decommissioning of the Cluff Lake operation.

"Five years after the plan was first proposed there will be a regulatory hearing in June in La Ronge on the decommissioning of Cluff Lake," Shpyth says, projecting two to three years of activity will be required to do the job. "Everyone is quite keen on it. They've been preparing for it and now they're just waiting for the regulatory approval to come through."

Cigar Lake is engaged in Part One of its environmental impact study which will be completed this year and Part Two will be completed in 2005. Pending full approval, a construction schedule could lead to production in about 2007.

The Cigar Lake deposit was discovered in 1980 and underwent significant environmental review in the 1990s. Cameco Corporation, COGEMA Resources (now AREVA) and two Japanese partner companies are expected to invest about $350 million to bring the mine into production.

"Hopeful is the general mood now that we have positive price indications from the market," Shpyth comments, noting Saskatchewan companies have a record of making the investments necessary to compete on a global scale.

"We remain leaders in production and leaders in exploration. We have proven that we can respond to the needs of the world market."

However, he further noted that major companies have options as to where they make their investment choices and that both Cameco and AREVA have recently decided to open new mines in the Central Asian republic of Kazakhstan.

"Australia and Central Asia are significant contributors to the world uranium market," Shpyth says, adding "a real potential exists for further development" with advantages such as low production costs, competitive tax rates, large ore bodies and favorable geological conditions.

"Governments, communities and the industry will all have to work together to ensure Saskatchewan remains the premier uranium mining jurisdiction for years to come."--J.A.