Cameco said Wednesday it has started producing uranium concentrate at the McClean Lake mill from ore mined at its Cigar Lake mine.

Mining at the much-delayed Cigar Lake project began in March, but was suspended in July to allow the orebody to freeze more thoroughly.

The company said mining resumed in the first week of September with 1,400 tonnes of ore delivered to McClean Lake so far.

The McClean Lake mill is expected to produce up to one million pounds of uranium concentrate from Cigar Lake ore this year and increase to its full production rate of 18 million pounds by 2018.

Cigar Lake had faced years of delays due to massive underground flooding at the mine.

Cameco owns a 50.025 per cent stake in Cigar Lake and is the operator of the mine, while Areva Resources Canada Inc. holds 37.1 per cent. Idemitsu Canada Resources Ltd. owns 7.875 per cent and TEPCO Resources Inc. holds five per cent.