Construction has officially commenced on a new uranium mine in the northern region of Saskatchewan. NexGen Energy Ltd. is spearheading 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 during the four-year construction phase of what is projected to be one of the world’s largest new uranium sources.
In a recent groundbreaking ceremony held at the mine site, Premier Scott Moe and former Prime Minister Stephen Harper, alongside local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger, addressed the attendees. Initial construction activities are focused on surface infrastructure, with shaft development slated to commence in 2027. Furthermore, the existing 914-meter airstrip is undergoing expansion to 1,780 meters.
Reflecting on the journey leading to this milestone, NexGen CEO Leigh Curyer shared the company’s early challenges and eventual success. Following initial setbacks in 2012, where drilling did not yield results, a breakthrough occurred in 2014 on the eighth drill hole, marking the discovery of significant mineralization in the area.
Curyer emphasized the strategic importance of the project, stating that the mine will play a crucial role in addressing the escalating global demand for electricity. He highlighted the pivotal role of nuclear energy in meeting this demand, positioning uranium as a vital resource on the world stage.
The projected annual output of the mine is estimated to reach up to 30 million pounds (over 13,000 tonnes) of uranium, contributing approximately 20% to the current global supply. NexGen was granted a construction and milling license by the Canadian Nuclear Safety Commission in March, with plans to apply for an operational license in due course.
Upon reaching full operational capacity, the mine is expected to generate 459 full-time employment opportunities and operate for a projected lifespan of 24 years. Ongoing exploration efforts in the vicinity indicate the potential for additional uranium deposits to be developed in the future.
NexGen has secured support from Indigenous communities affected by the project, having signed benefit agreements with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. These agreements typically encompass provisions for employment, training, local business contracts, and financial benefits.
Premier Scott Moe highlighted the economic prospects brought by the project, emphasizing the creation of long-term career opportunities for residents and the potential for community growth. Emphasizing the importance of responsible resource development, Moe underscored the pivotal role that projects like this play in supporting clean energy initiatives and global nuclear power requirements.
In parallel, construction is progressing on another uranium mine in northern Saskatchewan, with Denison Mines Corp. leading the development of the Phoenix uranium mine and mill site in the eastern Athabasca Basin. The estimated initial capital costs for the Denison project stand at $600 million, with production slated to commence in 2028.
Denison Mines Corp. is exploring innovative mining methods for the Phoenix mine, intending to utilize an in-situ recovery process that dissolves uranium within the ore body for extraction. With proven and probable uranium reserves estimated at 56.7 million pounds, Denison envisions a 10-year operational timeline for the mine.
The combined efforts of NexGen and Denison Mines mark significant strides in the development of uranium resources in Saskatchewan, contributing to both local economies and global energy demands.