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About UraniumUranium Mining and Production in Canada
Canada is a country rich in uranium resources and a long history of exploration, mining and generation of nuclear power. To 2008, more uranium had been mined in Canada than any other country – 428,000 tU, 18% of world total. Exploration for uranium ore began in earnest in 1942 under direction of the government for military purposes. A wartime ban on private prospecting was lifted in 1947, which led in the early 1950s to the discovery of major deposits near Elliot Lake, Ontario, and northern Saskatchewan. By 1959, 23 mines and 19 treatment plants were in operation, and Canada's C$330 million in uranium exports exceeded the value for every other mineral. A second burst of exploration in the 1970s resulted in major discoveries in the Athabasca Basin in northern Saskatchewan. Mines at Rabbit Lake, Cluff Lake and Key Lake started up in 1975, 1980 and 1983, which up until 2000 accounted for most of Canada's uranium production (14,223 tonnes of U3O8 in 1998). Cluff Lake, Key Lake and the original open pit at Rabbit Lake have now been mined out (underground mining continues at Rabbit Lake). Mines that began operation just a decade ago now contribute most of Canada's production. Current production Canada produced 10,617 tonnes of U3O8 in 2008, and in 2009 production was 11,997 tonnes U3O8 (10,173 tU) – 20% of world total. Most of this comes from its third generation mines, which started operation in 1999 at McClean Lake and McArthur River in northern Saskatchewan (the Rabbit Lake mine in the same region is the third source). The main uranium producers are Cameco and Areva Resources Canada (formerly Cogema Resources), part of France's Areva Group. Cameco was formed in the 1988 merger of Saskatchewan Mining Development Corporation and the government-owned Eldorado Nuclear Ltd. The company issued its first public shares in 1991 and was fully privatized in 2002. In the early 1990s, the Saskatchewan government had considered phasing out uranium mining in the province. This policy was later reversed after a joint Federal-Saskatchewan study panel on health, safety, environment and socio-economic impact found that the jobs provided by the industry would be hard to replace and that the environmental impact of mining could be minimized. Today, the provincial government actively supports uranium mining, and all new Saskatchewan uranium mines have international ISO 14001 environmental certification. Annual uranium production (tonnes U3O8)
Annual uranium production (tonnes U) (Where an asterisk (*) is shown, the figures are small and included with the McArthur River figure.)
Canadian uranium exports (tonnes uranium)
McArthur River The McArthur River uranium mine is the world's largest, with enormous reserves (about 150,000 tonnes U3O8) of high grade ore (21%) located 600 metres underground. Remote control raise boring methods are used to mine the ore, which is then trucked 80 km south to be milled at Key Lake, site of the closed mine that once produced 15% of the world's uranium. At the mill, which has been modified for the McArthur River ore, the ore is blended with 'special waste rock' and processed to produce U3O8. Tailings are deposited in a mined-out pit. The licensed capacity of the Key Lake mill is basically 8,485 t/yr U3O8, but after Cameco applied for an increase to 10,000 t/yr permission was given for production up to 9,250 t/yr to catch up earlier year shortfalls. It is now seeking to expand this to 11,340 t/yr U3O8.
Cameco is the majority owner and operator of McArthur mine as well as the Key Lake Mill (Areva is a 30.2% and 16.7% partner, respectively). Areva has applied for a licence to process some McArthur river ore at McClean Lake. Other deposits close to McArthur River are prospective. McClean Lake After starting operation in mid-1999, McClean Lake produced about 2500 t/yr of U3O8 from 2.4% ore up until 2005, although production was well down in 2006 through to 2010 due to lower ore grades. The mine has now been relicensed at 3640 t/yr. Operations have comprised three open pits, with an underground mine planned for the future. McClean Lake also has high-quality new plant and infrastructure. It uses the first mined-out pit for tailings disposal. The mill has been expanded to 5,500 t/yr U3O8 to accommodate the ore that eventually will be shipped from the Cigar Lake mine now under construction (see section on Cigar Lake below). Areva says that the mill is the most technologically-advanced in the world, being able to treat ore from less than 1% to 30% U. Efforts to increase production to fill the gap left by the delay in Cigar Lake production have had limited success, and development of the nearby small Caribou deposit awaits improved economic conditions. Mining of Sue E deposit 2005-08 and Sue B in 2008 over 2008-10 provided ore for the mill until mid-2010 when it was shut down and put on to care and maintenance. This will last until about a year before the Cigar Lake ore starts to be processed, unless Areva's 30% share of McArthur River high-grade ore can be diverted there. In March 2010 Areva applied for a licence to divert some McArthur River high-grade ore there for three years, entailing a 950 km road haul. Some 115,000 tonnes of low-grade ore remains stockpiled to be treated when markets improve, or possibly a diluent for the McArthur River ore. Reserves are small. McClean Lake is majority-owned (70%) and operated by Areva Resources. Denison Mines (22.5%) and the Japanese company Overseas Uranium Resources Development (OURD, 7.5%) are Areva's joint venture partners. Rabbit Lake Uranium was discovered at Rabbit Lake in 1968 and it was brought into production by Cameco in 1975. Most of the deposit has been mined out, but reserves still exist at Eagle Point, where 1,613 tonnes of U3O8 from an ore grade of 2.1% were mined underground in 2008. However, production is expected to diminish in the next few years. Future mines Uranium production in Canada is likely to increase significantly as several new mines, now planned or under construction, go into operation sometime after 2011. The two largest projects are Cameco's Cigar Lake mine and Areva's Midwest mine, both in northern Saskatchewan. The mill at McClean Lake has been modified to process ore from both mines. The Rabbit Lake mill will also be modified to take ore from Cigar Lake. Total production is expected to be 8,200 t/yr U3O8 from Cigar Lake and 2,600 t/yr from Midwest. Canadian uranium resources
Cigar Lake The proven and probable ore reserves at Cigar Lake are extremely large and very high grade. A 480-metre-deep underground mine is being developed in very poor ground conditions. Hence it will use ground freezing and high pressure water jets at this level to excavate the ore. High-grade ore slurry from remote mining will be trucked for toll treatment at Areva's expanded McClean Lake mill, 70 km northeast, for the first two years. The average feed grade will be 20.7% U3O8. Then, as production approaches full capacity, all of the leaching will be done at McClean Lake but about half of the uranium solution will go on to Cameco's Rabbit Lake mill 70 km east for final production of uranium oxide concentrate. From both mills total production is expected to be 8,200 t/y U3O8 (7,000 tU/y) ramping up to this over four years from production start. Known resources are 150,000 tonnes U3O8 at about 17% average grade, and with other resources the mine is expected to have a life of at least 30 years. Construction on the project began in 2005 with production originally scheduled to start in 2011. However, underground floods in 2006 and 2008 set the start date back until about mid-2013 and increased the overall cost of the project from C$660 million to more than C$1.8 billion. There are extra requirements for pumping capacity – now 2500 m3/h, and ground refrigeration. In February 2010, dewatering was complete and remediation was proceeding with the expectation that works will be completed during 2010. The estimated average cash operating cost for Cigar Lake has increased from $14.40 per pound U3O8 in 2007 to $23.14. Some 1.3 million cubic metres of waste rock from Cigar Lake is being emplaced under water in the Sue C pit at McClean Lake, to prevent acid generation from it. Tailings will remain at McClean Lake and Rabbit Lake. A Cigar Lake II deposit nearby is being investigated. Cameco, which has 50% ownership, is managing the joint venture, with Areva holding 37%, Idemitsu 8% and TEPCO 5%. Midwest Proven and probable reserves at Midwest are 18,900 tonnes of U3O8 with an average ore grade of 5.47%. A further prospect 3 km to the north is also being evaluated. The original plans were for an underground mine, utilising ground freezing and water jet boring, but new plans call for a large open pit mine that will go to a depth of 215 metres. The ore will be shipped 15 km to the McClean Lake mill to produce 2600 t/y U3O8 for seven years. A comprehensive environmental assessment for the project began in 2006. Production was originally scheduled to begin in 2011, but in late 2008 the starting date was postponed due several factors, including a 50% rise in the initial estimated capital costs of $435 million. The Midwest project is being managed by Areva Resources, which owns 69.16%. Denison Mines has a 25.17% stake and OURD Canada 5.67%. Dawn Lake Although its development is much further off, a deposit of more than 5,000 tonnes of indicated uranium resources is prospective at Dawn Lake in northern Saskatchewan. Grades of up to 30% ore at depths of 280 metres have also been reported nearby. Cameco has 57.4%, Areva 23.1% and Japan-Canada Uranium subsidiary JCU (Canada) Exploration 19.4%. Exploration prospects In addition to mining operations planned for the near future, active exploration involving more than 40 companies continues in many parts of Canada. While exploration has concentrated on northern Saskatchewan, new prospects extend to Labrador and Nova Scotia in the Atlantic provinces, Quebec province, Nunavut Territory in the far north, and Ontario's Elliott Lake area. Resource figures quoted are generally NI 43-101 compliant. The 2009 IAEA Red Book says that in 2007-08 "uranium exploration remained focused on areas favourable for the occurrence of deposits associated with Proterozoic unconformities in the Athabasca Basin of Saskatchewan, and to a lesser extent, similar geologic settings in the Thelon and Hornby Bay basins of Nunavut and the Northwest Territories. Uranium exploration also remained very active in the Otish Mountains of central Quebec where Strateco Resources Inc. has applied for a licence to conduct underground exploration on the Matoush deposit and is commencing environmental studies for Matoush. Exploration activity in the Central Mineral Belt of Labrador, where Aurora Energy Resources Inc. is proposing to develop the Michelin and Jacques Lake deposits, reduced significantly after April 2008 when the regional aboriginal government imposed a three-year moratorium on uranium mining on their lands." These are described more fully below. In uranium-rich northern Saskatchewan, exploration projects are now well-advanced at several locations. The Millennium deposit (42% owned by Cameco, 30% by JCU and 28% Areva Resources) has indicated resources of 21,000 tonnes of 4.5% grade U3O8 and 4,400 tonnes of 2.1% grade inferred. It is between McArthur River and Key Lake, and ore would be milled at Key Lake. A feasibility study on the project has led to Cameco seeking approval to mine it. Underground development is envisaged over 2013-17. The Tamarack deposit associated with Dawn Lake is also a focus of interest, with an indicated resource of 8100 tonnes U3O8 at 4.42% requiring underground mining. The Shea Creek project (51% owned by Areva, 49% UEX Corp.) in the western Athabasca Basin 13 km south of Cluff Lake has reported very high grade ore and a 900 metre shaft is being sunk to provide better access. UEX (21.3% owned by Cameco) has invested about C$30 million in exploration. In May 2010, UEX announced indicated resources of 29,000 t U3O8 grading1.54% and inferred resources of 11,100 tonnes grading 1.04%, as of January, with cut-off 0.30%. The deposit remains open. UEX is also exploring the Horseshoe and Raven deposits at Hidden Bay in the eastern Athabasca basin (5 km from Rabbit Lake and 12 km from McClean Lake). The Horseshoe deposit has indicated resources of 10,400 tonnes of U3O8 at a grade of 0.20% at 100 to 400 m depth. Raven has indicated resources of 5500 tonnes at 0.11%, with cut-off 0.05%, at 100 to 300 m deep. These amounts increase slightly with 0.02% cut-off. A Preliminary Technical Assessment of the deposits was positive and recommends a preliminary feasibility study which also includes the smaller but shallow West Bear deposit. The report assumes Horseshoe access by decline and Raven by open cut, with toll milling and tailings management at Rabbit Lake mill over seven years. Denison is actively exploring the Wheeler River deposit half way between Key Lake and McArthur River. It is a long strike from the latter and geologically very similar, with some high-grade uranium mineralisation. Denison has a 60% interest, Cameco 30% and JCU (Canada) 10%. A NI 43-101 compliant indicated resources at Phoenix Zone A is 16,200 tonnes U3O8 at an average grade of 17.98% U3O8, and an inferred resource at Phoenix Zone B is 1700 t U3O8 at an average grade of 7.27%, for underground mining. Fission Energy Corp with a consortium led by Korea Electric Power Corp (Kepco) is exploring the Waterbury Lake area near Midwest. Hathor Exploration has announced for its Roughrider prospect in Athabasca Basin inferred resources of 13,700 t U3O8 at 11.58%, with 0.4% cut-off in the Eastern zone for underground mining, and in the West zone indicated resources of 7800 t U3O8 at 1.98% and 4800 t at 11.03% with 0.5% cut-off for open pit mining. The East Zone is a series of moderately-dipping stacked, parallel lenses (greater than 0.5% U3O8). The main Labrador prospect centres on the Michelin deposit, which is being drilled in a C$21million program by Aurora Energy Resources (subsidiary of Fronteer Development). Michelin and the adjacent Jacques Lake deposit have measured and indicated resources of 35,000 tonnes of U3O8, plus 16,000 t inferred resources, mostly requiring underground mining. In 2009, a positive economic assessment of the project proposed investment of US$ 984 million to set up mine and mill, with production ramping up to 3000 t/y. A Nunatsiavut government moratorium until March 2011 is in place, and expiry of this will coincide with completion of a land use planning assessment being undertaken jointly by the Nunatsiavut and Newfoundland-Labrador governments. Bayswater Uranium Corp. has announced a very small deposit at Anna Lake nearby. In Nova Scotia, exploration has been proposed at Millet Brook, but it awaits a review of a 1985 moratorium on uranium mining in the province. In Quebec, exploration is underway at several locations with a total of more than 40,000 tonnes of indicated or inferred deposits. Strateco Resources has reported indicated resources of 3400 t U3O8 grading 0.75% and inferred resources of 6,000 tonnes grading 0.50% at its Matoush deposit in the Otish Basin of central Quebec. Abitex Resources has 6,000 t U3O8 mostly inferred resources at its Lavoie project in the Otish Mountains, and envisages mine production at 1200 t/yr from 2014. The company completed a scoping study in 2008 and will begin underground development in 2010, with a view to mine production in 2013. Azimut Exploration has committed C$42 million to uranium exploration, mainly for the Katavic project in Quebec's northern Nunavik region and other prospects in the Ungava Bay region further north. Uracan Resources reports 19,900 tonnes U3O8 of inferred resources at its North Shore prospect in eastern Quebec. Areva is establishing a joint venture with Waseco Resources to explore the Labrador Trough project. In the Nunavut Territory, some 500 km north of Manitoba, a joint venture headed by Areva is conducting a feasibility study on the Kiggavik uranium deposit in the Thelon Basin, with an estimated 67,000 tonnes U3O8 at 0.24% grade. The indigenous Inuit organization, Nunavut Tunngavic, reversed its previous ban on uranium exploration and mining in 2006, but the project has faced opposition from other groups. In March 2010, the Nunavut government ruled that the proposal would be reviewed by a territorial regulator rather than undergo a federal environmental assessment. The project involves the development of three open pit mines at Kiggavik and both an open pit mine and an underground mine at Sissons. Areva and its partners, JCU (Canada) Exploration and Daewoo, hope for a start-up of the mine and mill complex in 2015. Also in Nunavut, at Amer Lake, Uranium North Resources has reported inferred resources of 8,770 t U3O8. In Northwest Territories, Cameco has the prospective Boomerang project in the southwest Thelon Basin. Land access issues hinder active exploration at present. The Elliot Lake area of Ontario, which was the centre of Canada's early uranium mining, is again attracting exploration. In September 2008, Pele Mountain Resources commenced the permitting process for its Eco Ridge underground uranium and rare earth oxides mine and processing facility in the region. Eco Ridge contains indicated resources of 6900 tonnes U3O8 and inferred resources of 14,300 tonnes U3O8. The Serpent River-Pecors deposit is a few kilometres east. In British Columbia, the Blizzard prospect south of Kelowna, which was first explored in the 1980s, has been revived by Boss Power. The company has challenged a provincial government moratorium on exploration and mining imposed in April 2008, and the British Columbia government has indicated the Blizzard project may be able to go forward. Uranium exploration appears to be on the upswing throughout Canada. Cameco spent C$57 million on exploration in 2008 (plus a further $32 million in three strategic partnerships with junior explorers) and plans C$50-55 million for 2009, mainly in Saskatchewan, Nunavut and the Northwest Territories. In late 2007, Cameco announced an agreement with the Russian company Uranium Holding ARMZ (JSC Atomredmetzoloto) to create a joint venture to explore and mine uranium in northwest Russia, Saskatchewan and Nunavut. Mining and Processing At most of the Northern Saskatchewan mines through to McClean Lake the orebodies have been accessed by open cut mining. At conventional mines, the ore goes through a mill where it is first crushed. Primary crushing breaks up the largest pieces followed by fine crushing to reduce the material to small pieces of about 20 mm and less. The 'fine' ore is then ground in water to produce a slurry of fine ore particles suspended in the water. The slurry is leached with sulfuric acid to dissolve the uranium oxides. Most of the ore however remains undissolved in the leaching process, and these solids or 'tailings' are then separated from the uranium-rich solution, usually by allowing them to settle out. The liquid containing the uranium is filtered and the uranium then separated by ion exchange. Finally the uranium is recovered in a chemical precipitate which is filtered and dried to produce a uranium oxide concentrate, about 99% U3O8. It is then packed into 200 litre steel drums which are sealed for shipment. The U3O8 is only mildly radioactive. (The radiation level one metre from a drum of freshly-processed U3O8 is about half that - from cosmic rays - on a commercial jet flight.) Wastes from Mining and Milling When radium undergoes natural radioactive decay one of the products is radon gas. Because radon and its decay products (daughters) are radioactive and because the tailings are now on the surface, measures are taken to minimise the emission of radon gas. During the operational life of a mine the material in the tailings dam is usually covered by water to reduce surface radioactivity and radon emission (though neither pose a hazard at these levels). On completion of the mining operation it is normal for the tailings dam to be covered with some two metres of clay and topsoil to reduce radiation levels to near those normally experienced in the region of the orebody, and for a vegetation cover to be established. At Ranger and Jabiluka, tailings will be returned underground, as was done at the now-rehabilitated Nabarlek mine. In Canada ore treatment is often remote from the mine, and tailings are emplaced in mined out pits wherever possible and engineered dams otherwise. Run-off from the mine stockpiles and waste liquors from the milling operation are collected in secure retention ponds for isolation and recovery of any heavy metals or other contaminants. The liquid portion is disposed of either by natural evaporation or recirculation to the milling operation. With ISL no tailings are involved and very little waste is generated. The quality of the groundwater returns to normal once the oxygen input is discontinued. ISL thus has clear environmental advantages in the places it can be applied. Mining methods, tailings and run-off management and land rehabilitation are subject to Government regulation and inspection. The Health of Workers In Canada the Canadian Nuclear Safety Commission is responsible for regulating uranium mining as well as other aspects of the nuclear fuel cycle. In Saskatchewan, provincial regulations also apply concurrently, and set strict health standards for both miners and local people. Uranium itself is only slightly radioactive. However, radon, a radioactive inert gas, is released to the atmosphere in very small quantities when the ore is mined and crushed. Radon occurs naturally in most rocks - minute traces of it are present in the air which we all breathe and it is a significant contributor to the natural radiation dose that we all receive. Because it is airborne, special care must be taken to ensure that mine worker exposure, especially in poorly ventilated mineshafts, is limited. Open cut mines are naturally well ventilated. The Olympic Dam and Canadian (as well as other) underground mines are ventilated with powerful fans. Radon levels are kept at a very low and certainly safe level in uranium mines. (Radon in non-uranium mines also may need control by ventilation.) Gamma radiation may also be a hazard to those working close to high-grade ores. It comes principally from uranium decay products in the ore, so exposure to this is regulated as required. In particular, dust is suppressed, since this represents the main potential exposure to alpha radiation as well as a gamma radiation hazard. At the concentrations associated with uranium (and some mineral sands) mining, radioactivity is a potential health hazard. Precautions taken during the mining and milling of uranium ores to protect the health of the workers include:
At any mine, designated employees (those likely to be exposed to radiation or radioactive materials) are monitored for alpha radiation contamination and personal dosimeters are worn to measure exposure to gamma radiation. Routine monitoring of air, dust and surface contamination is undertaken. Canadian mine and mill facilities are designed to handle safely ore grades of up to 26% U. If uranium oxide is ingested it has a chemical toxicity similar to that of lead oxide. Similar hygiene precautions to those in a lead smelter are therefore taken when handling it in the drying and packing areas of the mill. The usual radiation protection procedures are applied at an ISL mine, despite the fact that most of the orebody’s radioactivity remains well underground, and there is hence minimal increase in radon release and no ore dust. Safeguards to Prevent Military Use Among uranium-exporting countries, Canada has some of the strictest conditions relating to the use of its uranium. These safeguards (inspections and accounting procedures) ensure that exported uranium is used for peaceful purposes only and is not diverted for military purposes or used in a way which adds to the proliferation of nuclear weapons. Agreements to this effect between the Canadian Government and each country wishing to import their uranium are therefore necessary before sales contracts can be completed. Such agreements are in addition to the application of International Atomic Energy Agency (IAEA) safeguards administered under the Nuclear Non-Proliferation Treaty.
General sources Uranium webpage on Natural Resources Canada website (www.nrcan.gc.ca) Red Books: |
