Cameco to resume uranium hexafluoride production

Uranium producer Cameco Corp. said Tuesday it will resume production of uranium hexafluoride, the chemical form of uranium used for uranium enrichment, following a five-month suspension.

The Saskatoon, Saskatchewan, company said it will recall 25 employees who were temporarily laid off when production of uranium hexafluoride (UF6) was suspended in December. Production ceased because Cameco could not obtain a supply of hydrofluoric acid _ a primary feed material for the production of UF6 _ on acceptable terms, it said.

Cameco said it has signed a new contract with a supplier of hydrofluoric acid. Production will resume at its Port Hope, Ontario, plant.

Deliveries of hydrofluoric acid are expected to resume in the next month and production of UF6 is expected to resume early in the third quarter of 2009, Cameco said.

Shares rose 18 cents, to $26.21 in afternoon trading.