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UPDATE 1-Cameco rises on union contract at key operations
November 1, 2010 / 5:45 PM / 7 years ago

UPDATE 1-Cameco rises on union contract at key operations

* Unionized workers get 14.75 pct pay raise over 4 years

* Shares up 2.54 percent at C$32.35

TORONTO, Nov 1 (Reuters) - Shares of Cameco (CCO.TO) rose more than 2 percent on Monday after the uranium producer said unionized workers at two of its key operations had accepted a new four-year labor contract.

Workers at the McArthur River mine and Key Lake mill voted in favor of the contract that gives them a 14.75 percent wage increase over four years, Cameco said.

The MacArthur and Key Lake operations, located in the western Canadian province of Saskatchewan, account for more than 10 percent of global uranium production.

The unionized employees at the operations had worked without contract since December of 2009.

The new contract could weigh on spot uranium prices, which have risen steadily since early August. Uranium cost $52.00 a pound on Tuesday of last week.

Cameco shares were up 2.54 percent at C$32.35 on Monday in midday trade on the Toronto Stock Exchange.

$1.00=$1.01 Canadian Reporting by Julie Gordon

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