Cameco to halt uranium hexafluoride production at Ont. plant

Cameco Corp. said Friday it is temporarily suspending production of uranium hexafluoride at its Port Hope, Ont., plant, a move that will result in the layoff of fewer than 100 of the facility's 440 workers.

The company said it is halting production because of problems with its supply of hydrofluoric acid. Cameco said it has been in a contract dispute with its sole supplier of the acid, and it has been receiving "unreliable and expensive" deliveries of the material, which is required for uranium hexafluoride production.

Cameco said it has used up its supplies of the acid it bought on a spot basis, and it is trying to broaden its sources of acid while it negotiates with its current supplier.

Saskatoon-based Cameco said it expects to meet uranium hexafluoride shipments to its customers in the first half of next year.

The suspension of uranium hexafluoride production is expected to take several weeks.

Cameco shares were off 40 cents at $21.25 in early trading on the TSX, but ended the day up 50 cents at $22.15.