Provincial government to stand up for uranium producers

The Saskatchewan government is expected to intervene on behalf of the province’s uranium producers after the U.S. government announced an investigation into the national security implications of nuclear fuel imports.

Premier Scott Moe said he discussed uranium with U.S. Secretary of Commerce Wilbur Ross last month, and plans to send him a letter explaining that Saskatchewan-mined uranium is a “safe, stable and sustainable supply of energy to the United States.”

“The Government of Saskatchewan will always stand up for Saskatchewan’s interests, and will advocate for Canadian uranium to be exempt from any measure restricting imports to the United States,” Moe said this week.

The U.S. Department of Commerce announced the probe Wednesday.

It is expected to take up to 270 days, after which U.S. President Donald Trump will have 90 days to make a decision about possible trade actions.

The investigation is being conducted under Section 232 of the 1962 Trade Expansion Act, which Trump used to apply new tariffs on steel and aluminum imports — a source of deep concern for Saskatchewan steel manufacturers.

Saskatoon-based Cameco Corp., North America’s largest uranium producer, said earlier this week that it is too soon to speculate on any effects the U.S. probe will have on its operations, most of which are in northern Saskatchewan.

“We will need to see what the investigation finds, if any trade action is recommended, and what specific remedies might be pursued before the potential impact, positive or negative, can be determined,” Cameco CEO Tim Gitzel said in a statement.

Uranium mining is one of Saskatchewan’s most significant industries, employing more than 3,000 people and accounting for around three per cent of the province’s gross domestic product — $1.7 billion in 2016.

About a third of Cameco’s $2.2 billion in sales by volume went to the U.S. last year.

Moe said Jeremy Harrison, the province’s Minister of Trade and Export Development, has reached out to federal Foreign Affairs Minister Chrystia Freeland.

Harrison’s counterpart across the aisle did the same earlier this week.

“This is a vital industry for our province, and this new development requires immediate attention from your government to avoid serious economic damage,” Saskatchewan NDP trade critic Vicki Mowat wrote in a letter to Freeland.

While Cameco has cut back operations in the face of a weak market, Moe said the company remains an “incredibly important” part of the provincial economy, particularly in northern Saskatchewan.