Reuters reported that Cameco Corporation has reached a deal with unionized workers at its McArthur River mine and Key Lake mill in Saskatchewan one day ahead of the expiration of their labor contract, averting the possibility of a strike that could have boosted uranium prices.

Workers at the operations which account for more than 10% of global uranium production voted earlier this month to give their union, the United Steelworkers a strike mandate raising the possibility of a work stoppage that could have started.

The union said that the two sides had reached a tentative agreement and that ratification votes will be held over the next two weeks. News of the deal could weigh on spot uranium prices which trend to be prone to even modest shifts in supply and demand.

The price, which is calculated weekly, has been rising since early August, with an extra spurt in October likely driven in part by anticipation of a labor stoppage.

(Sourced from Reuters)