Construction has officially commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is initiating the development of an underground uranium mine in the southern Athabasca Basin, located approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion over the four-year construction phase to establish one of the world’s largest new uranium sources.
A groundbreaking ceremony was held at the mine site, where Premier Scott Moe, former prime minister Stephen Harper, local leaders from Metis Nation-Saskatchewan, and Desnethé-Missinippi-Churchill River MP Buckley Belanger addressed the attendees. Initial construction activities are focusing on surface infrastructure, with shaft development set to commence in 2027. An expansion of the current 914-meter airstrip to 1,780 meters is also underway.
NexGen CEO Leigh Curyer reflected on the journey leading up to this milestone, noting the challenges faced since their arrival in 2012 when initial drilling efforts did not yield results. However, in January 2014, on the eighth drill hole, significant mineralization was discovered, marking the beginning of what Curyer described as a pivotal energy fuel project on a global scale.
Highlighting the significance of the project, Curyer emphasized the role of uranium in meeting the escalating demand for electricity driven by technological advancements and energy security needs. The mine is projected to potentially produce up to 30 million pounds (over 13,000 tonnes) of uranium annually, representing about 20% of the current global supply.
Following the approval from the Canadian Nuclear Safety Commission for the construction of the mine and mill, NexGen is preparing to apply for an operational license. Once operational, the mine is expected to create 459 full-time jobs and operate for a lifespan of 24 years. Ongoing exploration activities in the vicinity hint at the possibility of developing additional uranium deposits in the future.
NexGen has secured endorsements from Indigenous communities in the project area, with benefit agreements signed with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. These agreements typically include provisions for employment opportunities, training guarantees, support for local businesses, and financial benefits.
Premier Scott Moe emphasized the opportunities the mine presents for the local populace, emphasizing the creation of sustainable careers and economic growth for communities. Uranium mining plays a significant role in the provincial economy, employing over 2,300 individuals, with nearly half of the workforce in northern uranium mines comprising residents from the region.
Moe underscored the strategic importance of developing resources like uranium in a responsible manner, ensuring benefits for local communities while contributing to global energy needs. The project aligns with Saskatchewan’s participation in the global nuclear power sector, emphasizing the state’s commitment to clean energy production.
In a related development, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin region of northern Saskatchewan. This initiative, estimated to cost $600 million for initial capital outlay, targets production commencement in 2028. The Denison mine aims to employ an innovative in-situ recovery method, involving the injection of an acidic solution into the ore body to dissolve uranium for extraction to the surface.
With plans to operate the mine for a decade, Denison projects a significant uranium reserve totaling 56.7 million pounds of proven and probable reserves. This initiative marks a substantial step towards meeting the demand for uranium and contributing to the clean energy sector.