Cameco

Cameco

November 13, 2006 00:57 ET

Cameco Corporation: McArthur River and Key Lake Workers Accept Contract Offer

SASKATOON, SASKATCHEWAN--(CCNMatthews - Nov. 13, 2006) - Cameco Corporation (TSX:CCO)(NYSE:CCJ) advises that about 400 unionized employees at its McArthur River and Key Lake uranium operations have accepted a contract settlement offer from the company.

The workers, represented by the United Steelworkers Local 8914, voted in favour of a new four-year contract that provides a 21.5% wage increase over the period, further wage increases for journeypersons and enhanced benefits.

"This contract rewards our workers and their families for their good work and positions us to attract and retain the skilled people we need for continued growth," said Cameco's president and CEO Jerry Grandey. "It also provides an extended period of stability for our customers and investors."

Negotiations have been ongoing since the previous three-year contract expired December 31, 2005. In July, the company and union jointly applied for conciliation under the Canada Labour Code. The tentative agreement was reached on October 11, 2006. A majority of the union's bargaining committee recommended that members accept the agreement.

The Key Lake operation mills uranium ore mined at McArthur River. Together, the operations produce 18.7 million pounds of uranium concentrate annually.

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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

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
    Investor & media inquiries
    Alice Wong
    (306) 956-6337
    or
    Investor inquiries:
    Bob Lillie
    (306) 956-6639
    Website: www.cameco.com