WINNIPEG, Manitoba, Jan 6 (Reuters) - Cameco Corp , the world’s second-largest uranium producer, said on Wednesday it expects its newest mine at Cigar Lake, Saskatchewan to produce 16 million packaged pounds of uranium concentrate in 2016, subject to regulatory approval.
Reaching the higher output target depends on regulators approving an increase in the annual production limit at the McClean Lake mill, which processes Cigar Lake ore and is owned by France’s Areva SA, Cameco said in a statement.
Cameco owns just over half of the Cigar Lake mine, with Areva holding a more than a one-third stake. Cameco said it would report last year’s output at Cigar Lake next month.
It had aimed for production of 6 million to 8 million pounds from the mine in 2015, but said in October that it exceeded the target.
Oversupply has weighed down global uranium prices, after the 2011 Fukushima meltdown led to Japan shutting its reactors. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Richard Chang)