(May 22, 2008, Port Hope) Following recent media coverage, we have received a number of questions about the status of remediation efforts at our Port Hope facility. The following Q/A provides a brief update on the current status. We have been providing regular updates in the company's quarterly reports.
What have you done to stop the spread of contamination from the UF6 plant?
In July 2007, we halted UF6 production after discovering that uranium, and potentially other chemicals, were entering the soil beneath the plant. Since then we have drilled extensively around the site to determine where the material went and the appropriate method of dealing with it. We have installed a groundwater management system that cuts off the flow of contaminated groundwater from beneath the UF6 plant. The system consists of six collection wells around the plant, two to the east and four to the south. We will be installing other technologies where appropriate to prevent any further spread of contamination.
Is contaminated groundwater reaching the harbour?
As part of the remediation effort, we are continually updating our computer modeling of the groundwater flow on the plant site. According to the modeling, we discovered that small amounts of contaminated groundwater may be reaching the harbour. In order to confirm if contamination is entering the harbour, we are installing an additional 22 monitoring wells along the harbour which is at the edge of our property. This process is nearly complete and will begin to provide data in the coming weeks.
Are your operations affecting the quality of the water in the harbour?
Water quality in the harbour has not changed in many years – uranium, arsenic and fluoride levels in the harbour have remained consistent for the past nine years. Sampling of harbour water done within the past two weeks shows no change in quality. In general, uranium and arsenic levels in the harbour are lower than Ontario drinking water standards but occasionally higher than surface water quality objectives. Fluorides are generally non-detectable and we have not been testing for trichloroethylene but plan to do so.
The Port Hope harbour has long been acknowledged as being contaminated after serving as the home for many industries over the past 150 years. The harbour is scheduled to be remediated as part of the Port Hope Area Initiative – a Canadian government program designed to deal with historic waste.
If contamination is entering the harbour, how will you stop it?
We are working with hydrogeological experts from Golder Associates and the University of Waterloo to identify the best way of addressing the situation.
What would be the potential cost of this added remediation?
At this point it is too early to say. We first need to gather data to determine what, if any, remediation is required.
What are your current estimated costs of remediation at Port Hope?
Cameco spent $18 million in 2007 to address this situation. In 2008 cleanup costs are anticipated to range from $15 – 20 million. In addition, the cost of plant improvements are anticipated to range from $20 – 25 million.
Will this affect your production startup?
Our production schedule remains unchanged. We have previously indicated that we anticipate restarting the UF6 plant in the third quarter of 2008 at the earliest.
Has this impacted your UO2 plant on the same site?
No.
For more information contact:
Doug Prendergast
Senior communications specialist
Cameco Corporation
Tel: (905) 885-1129 ext. 4019
