Rich industry relies on McArthur ore.Scoop after scoop, shift after shift and day after day, the ore keeps coming. It happens with such precision and regularity that an observer soon forgets how much each scoop-full is worth, not only its value to the mine operators but to the industry and the province. In an event-filled 2006 it was easy to lose sight of where the industry would be without McArthur River. [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] 2006 was a year of business as usual in the mine that redefined the term 'high-grade uranium uranium (y  rā`nēəm), radioactive metallic chemical element; symbol U; at. no. 92; at. wt. 238.0289; m.p. 1,132°C;; b.p. 3,818°C;; sp. gr. 19. deposit'. McArthur River accounted
for nearly three-quarters of Saskatchewan's uranium production in
2006, with the remainder mined at Rabbit Lake Rabbit Lake can refer to:
In terms of future production, the industry is investing more than $500 million to build the Cigar Lake mine and to change milling facilities at McClean Lake and Rabbit Lake to process the ore. Plans to develop the Midwest deposit as an open pit mine, with the ore to be milled at McClean Lake, are undergoing environmental assessment. The uranium market The uranium market, like all commodity markets, has a history of volatility, moving not only with the standard forces of supply and demand, but also to whims of geopolitics. It has also evolved particularities of its own in response to the unique nature and use of this material. benefited from a doubling in the per-pound price of uranium from $US 72/lb U308 in 2006 to the current price of $US 113/lb U308. This triggered an unprecedented uranium exploration surge across Northern Saskatchewan, which pushed expenditures past the $100 million mark; investments that are creating waves and ripples throughout the provincial economy. In the brains and hearts of mining company investors, there is the belief and hope of a yet-to-be-discovered reserve resembling the richness of McArthur River. "We need to make new discoveries," agrees Saskatchewan Mining Association Uranium Section Chairman Bob Pollock. "In terms of known reserves, Australia is clearly Number One with Canada tucking in behind Kazakhstan which is at Number Two." The gap between starting exploration and producing a barrel of uranium concentrate is large because it takes as much as 20 years to go from grassroots exploration to a proven ore reserve, and then from proven reserve to production. Pollock believes the worldwide imbalance imbalance /im·bal·ance/ (im-bal´ans) 1. lack of balance, such as between two opposing muscles or between electrolytes in the body. 2. dysequilibrium (2). between short supply and strong demand will continue for some time. "It is creating strong market conditions, which is good news from a producing company's perspective, and from the perspective of junior companies, and certainly good news long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ," Pollock says. Much-improved prices, he adds, made certain low-grade low-grade Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield but entails substantial risk because promised payments may not be made in a timely manner. deposits in the province 'moving targets' and pushed them into the category of economically viable reserves. Much has been written over the water inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. at Cigar Lake in October, yet in Pollock's mind there was never any question about continued development of 'the world's second-largest high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. uranium deposit'. Construction on related processing facilities continued nearly unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. and remediation efforts at Cigar Lake began almost immediately. "It's a very valuable ore body," Pollock emphasizes. "The operator clearly plans a strong management response to correct deficiencies that led to the water inflow, and to bring the mine into production on the new schedule." On the regulatory front, a major milestone was the passing of the provincial government's Reclaimed re·claim tr.v. re·claimed, re·claim·ing, re·claims 1. To bring into or return to a suitable condition for use, as cultivation or habitation: reclaim marshlands; reclaim strip-mined land. Industrial Sites Act in May 2006. The Act is expected to come into force this year and form the basis for permanent institutional control over decommissioned mine sites on Crown land. A perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. care fund established by mine operators and administered by the Province will finance long-term monitoring. The uranium industry successfully met the challenge of recruiting qualified staff in 2006, a feat made difficult by competition from other industries. Pollock believes employees and their families appreciate mining industry wages and working conditions that are notable for the seven-days-in, seven-days-out site rotation. "I believe we need to continue to provide an attractive work environment in all aspects of the industry, including salaries, safe operations and overall working conditions," Pollock says. "We've had good response to advertisements for employees in all fields and we recognize this will be one area where there will be continuing challenges." BOB POLLOCK, URANIUM SECTION CHAIRMAN |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion