Uranium outlook swells on price, production. (Uranium).

Saskatchewan uranium producers had much to smile about in 2001, not the least being a 33 per cent increase in the market price of their primary product. While that magnitude of price jump alone would be enough to touch off celebrations, uranium producers in the province took great satisfaction in many more accomplishments during the year.

An excellent safety record, production levels at or above targets and unprecedented co-operation between leading players in the industry all contributed to a general feeling of optimism within the sector, says Saskatchewan Mining Association Uranium Section Chairman Al Shpyth.

Cameco Corporation and Cogema Resources Inc. are proud of their standing as two of the world's largest uranium producers and co-exist in Saskatchewan as both healthy corporate competitors and partners in the uranium industry. A combined donation for the new Athabasca Health Facility is evidence of each company's dedication to community well-being and a standing mutual aid agreement shows their commitment to safety.

"Cameco and Cogema work very well together on that front," Shpyth says. Both companies in the uranium sector are also independently formalizing their management systems in regard to safety policies and programs.

Measures such as hiring registered nurses to work in on-site health centres ensure uranium mines are fully equipped to handle the initial response to any incident. Attention to safety is not limited to the mine site but extends to every aspect of company operations.

"People don't turn their backs on safety just because they aren't in a mine or mill operation," Shpyth says. "There is a primary focus everywhere on reducing the amount of lost time due to accidents'

In 2001 the accident frequency rate in the uranium sector was reduced to a remarkable 0.66 per 200,000 hours worked. An underlying value in the industry is the development of a safety culture that extends from corporate commitment to contractor awareness to individual diligence regarding safety performance.

Wellness initiatives expand the idea of safety even further. One way to contribute to a safe workforce is by being well in your personal life which includes everything from healthy lifestyle choices to reduced stress. Shpyth says: "If you take that extra step and have a larger focus on being well it will allow fewer distractions at work and support a safer workplace."

"In the uranium industry we have a pretty low turnover in employees and we are experiencing more of the types of injuries commonly associated with an older workforce," Shpyth says. "We're addressing that aspect of safety as well.

People are becoming more aware that they need to stretch, ask for help or use a mechanical assist."

Attention to safety is carried through into legislation governing the uranium industry. The Nuclear Safety and Control Act was passed in 2000, prompting Cameco to create a permanent position called Director of Government Relations. Shypth was named to the position and works out of the Canadian Nuclear Association offices in Ottawa.

"A great deal of work goes into meeting the substantial regulatory requirements for the industry," Shpyth says. "We're there to be involved in that regulatory process."

On the marketing side of uranium there was definite improvement over results from 2000. The price rose steadily through 2001 from $7.50 (US) to almost $10 per pound by the end of the year while Saskatchewan -- the only producer of uranium in Canada -- held firm to its share of the world market.

"The industry as a whole was very pleased that Cameco's McArthur River site was able to meet its target in its first full year of operation," Shpyth says, tallying production at 18 million pounds.

Cogema's new state-of-the-art facility at McLean Lake also enjoyed full production in 2001. For 2002, expect a transition year for Cluff Lake with the suspension of underground operations in May and of milling at the end of the year; however Rabbit Lake -- which was shut down last year -- will be opening again this year.

"Cluff was originally planned to shut down in 2000 but they were able to find more ore," Shpyth explains. "At Rabbit they'll be using a new mining method which will add about three years to the life of that mine."

Looking to the future, the industry sees Cigar Lake coming on stream in 2005 depending on market demand.

"The price will need to increase to encourage further primary production," Shpyth says.

"This year we're looking for more of the same as last year. The nuclear industry worldwide continues to improve its performance which increases demand and contributes to continued strength of price."