Construction has commenced on a new uranium mine in northern Saskatchewan by NexGen Energy Ltd. The underground uranium mine, located in the southern Athabasca Basin, is approximately 130 kilometers north of La Loche. The company plans to invest $2.2 billion over a four-year construction period in one of the largest upcoming sources of uranium globally.
The groundbreaking ceremony for the mine took place recently, with Premier Scott Moe and former Prime Minister Stephen Harper among the speakers, along with local leaders from Metis Nation-Saskatchewan and Member of Parliament Buckley Belanger. Initial work is focused on surface infrastructure, with shaft development expected to begin in 2027. Additionally, the current 914-meter airstrip is being expanded to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the challenging journey to reach this point. He mentioned the initial struggles upon arrival in 2012, where multiple unsuccessful drilling attempts led to a temporary halt. However, a breakthrough occurred in 2014 when mineralization was discovered on the eighth hole, marking the start of a significant energy project.
Highlighting the importance of the mine, Curyer emphasized the role of nuclear energy in meeting the rising global demand for electricity. The company anticipates an annual production capacity of up to 30 million pounds (over 13,000 tonnes) of uranium, contributing around 20% of the current global supply.
The Canadian Nuclear Safety Commission granted NexGen a construction license for the mine and mill earlier this year. Upon completion, the mine is expected to create 459 full-time jobs and operate for 24 years. Ongoing exploration in the area suggests potential development of nearby uranium deposits in the future.
NexGen has secured support from Indigenous communities close to the project site, signing benefit agreements with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. These agreements, encompassing provisions for employment, training, and financial benefits, aim to ensure local community involvement and development.
Premier Scott Moe lauded the project as a significant opportunity for regional prosperity, emphasizing the creation of sustainable careers and economic growth. The development of uranium resources aligns with Saskatchewan’s strategic objectives, providing clean fuel for nuclear power generation on a global scale.
In a related endeavor, Denison Mines Corp. is undertaking the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin. With an estimated initial capital outlay of $600 million, the mine is projected to commence production in 2028. Denison’s innovative approach includes utilizing an in-situ recovery method to extract uranium efficiently.
The Denison mine, expected to operate for a decade, holds substantial proven and probable uranium reserves, positioning it as a significant contributor to the region’s mining sector. The development of these uranium projects underscores Saskatchewan’s commitment to responsible resource management and economic growth.
