Clean Environment

This indicator provides information about the number of significant environmental incidents. We consider an incident significant if it is classified as level IV or level V according to our Corrective Action Process. We determine significance based on the incident's actual or potential environmental impact, or by the level of regulatory and public concern about it.

For incidents that involve a release of material, we report the total quantity of material released and any associated impacts.

Significant incidents 2009

Incident 1 – Cameco Fuel Manufacturing (CFM) Cobourg
During non-routine cleaning of the waste treatment area in August 2009 we discovered that the sump pit in the containment area was significantly compromised, allowing fluoride and other contaminants to be released. Subsequent investigation confirmed that there was minor soil contamination but that fluoride (the primary constituent of concern) had not migrated beyond the immediate area. The sump was repaired and all other sumps at both CFM plants were inspected and upgraded as needed.

Incident 2 – Port Hope Conversion Facility
On October 14, 2009, 90kg of R-22 refrigerant was released from an onsite refrigeration system. There was no measurable impact to the environment.

What it means

Both of these incidents had little impact on the environment. They were raised in significance because of heightened regulatory scrutiny and community concerns about similar events including groundwater contamination discovered at the Port Hope Conversion Facility in 2007.

Looking ahead

Cameco will continue to strive for no significant environmental incidents at all our sites. We had no significant incidents in 2010 and 2011.

Definitions

Significant environmental incident

Cameco considers level IV and V environmental incidents significant.

Note

Cameco's Environmental Effect Ratings:

Level I – no measureable impact to the environment
Level II – negligible impact
Level III – short-term, seasonal impact
Level IV – mortality of some species, but not affecting ecosystem function
Level V – impairment of ecosystem function

Clean Environment

This indicator provides information on the number of "significant fines" that we received for non-compliance with environmental laws and regulations, including:

• International declarations/conventions/treaties, and national, sub-national, regional and local regulations
• Voluntary environmental agreements with regulating authorities
• Cases brought against us through dispute resolution mechanisms

In 2009, we paid a $75,000 (US) fine at our Crow Butte mining operation in Nebraska for an incident dating back to 2006. In 2011, we paid two fines totalling $412,000 (US) in relation to the same incident at JV Inkai in Kazakhstan.

What it means

In 2006, our operation in Crow Butte was issued a Notice of Violation regarding unpermitted use of well cleanup water for drilling. This error was self-discovered and self-reported to the Nebraska Department of Environmental Quality and the practice was discontinued. The $75,000 (US) fine was imposed in 2009, $25,000 (US) of which was paid to the Clerk of the District Court of Lancaster County and $50,000 (US) to the Attorney General's Environmental Protection Fund.

In 2011, JV Inkai was cited for failing to observe environmental legislation in regards to the disposal of some drilling muds and received two fines – one for $205,000 (US) for failing to observe environmental legislation, which was paid under protest, and the other was for damages in the amount of $207,000 (US) for failing to observe applicable legislation.

During the reporting period, Cameco received no other significant fines at any of its operations for failing to comply with environmental laws or regulations.

Definitions

Significant fines

Fines that exceed $50,000, paid by Cameco or a subsidiary to a government authority for failure to comply with its environmental laws or regulations.