Cameco has announced it will permanently layoff approximately 700 employees, following a weak uranium market.

About 550 employees, including those currently on temporary layoff, at Saskatchewan’s McArthur River and Key Lake mine sites will be let go. Cameco is shutting down production at McArthur River and Key Lake for "an indeterminate duration".

“It was a difficult decision to make, because of the impact it will have on our employees, their families, and other stakeholders, but we must take this action to ensure the long-term sustainability of the company,” Tim Gitzel, Cameco’s president and CEO, said.

In addition, Cameco will terminate about 150 corporate positions.

The layoffs were announced in the company’s quarterly earnings results, which drew a net loss of $76 million, compared to a loss of $2 million for the same period last year.

As a result of the layoffs, Cameco said it expects about $40 million in severance costs in the third quarter.

“Our thoughts are with the employees and families who are affected by this news. Saskatchewan’s Rapid Response Team will be reaching out to Cameco to offer and provide assistance to the employees impacted by this decision,” Bronwyn Eyre, Saskatchewan’s Energy and Resources Minister, wrote in a statement.

Eyre said the layoffs highlight the challenges Canada’s natural resource industries face.

“All levels of government need to be engaged on this important file to ensure market access for Saskatchewan’s natural resource industries, such as uranium. We have had conversations with the Government of Canada and asked that it take action immediately.”

Saskatchewan accounted for 22 per cent of the world’s primary uranium production in 2017.