July 06, 2007 19:27 ET

Cameco Conversion Facility Workers Accept Contract Offers

SASKATOON, SASKATCHEWAN--(Marketwire - July 6, 2007) - Cameco Corporation (TSX:CCO) (NYSE:CCJ) said today that about 250 unionized employees at its conversion facility in Port Hope, Ontario have accepted contract settlement offers.

Workers at the conversion facility, represented by United Steelworkers Local 13173, and security staff, members of Local 8562, voted this week in favour of a new three-year contract that provides wage increases of 4% in each of the first two years and 4.75% in the third year.

"We are pleased that these contract negotiations have successfully concluded," said Jerry Grandey, president and CEO. "These agreements will allow us to focus on developing and delivering quality products and services to our customers and developing new opportunities within the nuclear fuel cycle."

Contracts with both groups of employees expired June 30, 2007.

Cameco's conversion facility in Port Hope produces uranium dioxide for manufacture of Candu reactor fuel and uranium hexafluoride, which after for further processing becomes the fuel for most other types of reactors.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.

Statements contained in this news release, which are not historical facts, are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: the impact of the sales volume of fuel fabrication services, uranium, conversion services, electricity generated and gold; volatility and sensitivity to market prices for uranium, conversion services, electricity in Ontario and gold; competition; the impact of change in foreign currency exchange rates and interest rates; imprecision in decommissioning, reclamation, reserve and tax estimates; environmental and safety risks including increased regulatory burdens and long-term waste disposal; unexpected geological or hydrological conditions; adverse mining conditions; political risks arising from operating in certain developing countries; terrorism; sabotage; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including tax and trade laws and policies; demand for nuclear power; replacement of production; failure to obtain or maintain necessary permits and approvals from government authorities; legislative and regulatory initiatives regarding deregulation, regulation or restructuring of the electric utility industry in Ontario; Ontario electricity rate regulations; natural phenomena including inclement weather conditions, fire, flood, underground floods, earthquakes, pit wall failure and cave-ins; ability to maintain and further improve positive labour relations; strikes or lockouts; operating performance, disruption in the operation of, and life of the company's and customers' facilities; decrease in electrical production due to planned outages extending beyond their scheduled periods or unplanned outages; success of planned development projects; and other development and operating risks.

Although Cameco believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. Cameco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • Cameco Corporation
    Inquiries - Saskatoon
    Lyle Krahn
    (306) 956-6316
    Inquiries - Port Hope
    Bob Kelly
    (905) 885-1129 (ext. 4018)