Cameco Resumes Full Production at Key Lake and McArthur River Operations

Uranium major Cameco (TSX:CCO,NYSE:CCJ) has resumed full production at its Key Lake mill and McArthur River mine in northern Saskatchewan following a supply route disruption caused by regional flooding.

The logistics disruption stemmed from the partial collapse of the Smoothstone River Bridge due to high water levels.

While Cameco’s mining and milling facilities were not directly inundated by floodwaters, the bridge serves as the primary transport route for hauling critical operating supplies to both operations. Deliveries were further impeded by weight and traffic restrictions imposed on an alternative secondary roadway.

Cameco stated it has bypassed the damaged bridge infrastructure by routing freight volumes through the secondary road system.

"We are in regular contact with the Saskatchewan Ministry of Highways, and while the timing to restore access to our primary supply route is still being confirmed, we have now been able to consistently deliver the volume of critical materials required to resume full operations at Key Lake and McArthur River using the secondary route," the company said in a statement.

Management noted that seasonal weather conditions continue to present operational risks to the supply chain.

"However, as is the case every spring season, there remains a risk that continued thawing and precipitation events could result in further road restrictions, which could cause delays in future deliveries of critical operating materials to our sites," the company maintained.

Cameco’s Cigar Lake mine was not affected by the flooding and maintained normal output throughout the transport disruption.

The company confirmed that its 2026 consolidated production outlook remains unchanged at 19.5 million to 21.5 million pounds of U3O8. Further, the temporary production halt at the Key Lake processing plant and the reduction of mining activities at McArthur River have not altered the annual output targets for the combined operations.

The restart stabilizes supply lines from a province that reported US$12.8 billion in total mineral sales for 2025, representing a 19 percent year-on-year increase. Uranium sales within the province rose 24 percent to an industry record of US$3.2 billion, exceeding provincial targets outlined in its 2030 Growth Plan for the second consecutive year.

Saskatchewan accounted for US$6.7 billion in mineral resource development spending in 2025, representing 25 percent of the total national expenditure in Canada. The province also generated more than 16 percent of total Canadian spending on mineral exploration.

The province is currently attempting to diversify its industrial mineral base beyond uranium and potash through its Targeted Mineral Exploration Incentive, which funded 34 separate projects last year.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.