Construction has officially commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is constructing an underground uranium mine in the southern Athabasca Basin, approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion over the four-year construction phase of one of the world’s largest new uranium sources.
At a groundbreaking ceremony held at the mine site, 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 activities include the development of surface infrastructure, with shaft development scheduled to commence in 2027. Additionally, the current 914-meter airstrip is being extended to 1,780 meters.
CEO Leigh Curyer reflected on the journey of establishing the mine, recalling the challenges faced since their arrival in 2012. After unsuccessful initial drilling attempts, a breakthrough occurred in 2014 when mineralization was discovered on the eighth drill hole, marking the start of a significant energy project.
The mine is poised to address the escalating demand for electricity, with Curyer emphasizing the importance of nuclear energy and uranium as critical global resources. The projected annual uranium production of the mine is estimated at up to 30 million pounds, which would contribute approximately 20% of the current global supply.
Following the issuance of a construction and mill license by the Canadian Nuclear Safety Commission in March, NexGen is now preparing to apply for an operational license. Once operational, the mine is expected to create 459 full-time jobs and have a lifespan of 24 years. Furthermore, ongoing exploration in the region suggests the potential for additional uranium deposits to be developed in the future.
The company has secured endorsements from Indigenous communities affected by the project, including 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 opportunities, support for local businesses, and financial benefits.
Premier Scott Moe highlighted the economic opportunities that the mine presents for the region. He emphasized the significance of ethical resource development that benefits local communities and contributes to global clean energy goals.
Uranium mining plays a crucial role in Saskatchewan’s economy, employing over 2,300 individuals, with nearly half of the workforce residing in northern communities. Moe underscored the importance of responsible resource development to meet energy demands while ensuring sustainable growth and environmental stewardship.
In addition to the NexGen project, Denison Mines Corp. is advancing the construction of the Phoenix uranium mine in the eastern Athabasca Basin region. Initial estimates suggest capital costs of $600 million, with production slated to commence in 2028. The Denison mine is expected to utilize an innovative in-situ recovery method, aimed at optimizing uranium extraction efficiency.
With proven and probable uranium reserves totaling 56.7 million pounds, Denison plans to operate the mine for a decade, contributing to the province’s uranium production landscape and supporting the region’s economic growth.
The development of these uranium mines underscores Saskatchewan’s strategic position in the global energy sector and its commitment to sustainable resource utilization and economic development.