Cameco is backing off on its application to license its Millennium Mine uranium project, which was slated for a site 600 km north of Saskatoon.

A news release from Canadian Nuclear Safety Commission (CNSC) said the uranium giant does not want to go ahead with licensing the mine. The federal nuclear regulator says the company said it's hesitating to go through with licensing due to 'current economic conditions' in world uranium markets.

The CNSC was scheduled to begin public hearings next month as part of Cameco‚Äôs application for a 10-year licence.

The mining company can request to apply for the licence again in the future.

Cameco acquired its initial 70 per cent stake in the Millennium Mine project from Areva two years ago for $150 million.

The Millennium Mine was proposed approximately 36 km north of Key Lake, Sask. Company fact sheets say the deposit is about 600 m below ground and that Cameco planned to operate mining on the site for 'several years'. 

Cameco received provincial approval for its environmental plans for the mine in December.