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 is investing $2.2 billion over the four-year construction phase to establish one of the world’s largest new sources of uranium.
During a groundbreaking ceremony at the mine site, Premier Scott Moe and former prime minister Stephen Harper, along with local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger, addressed the attendees. The construction activities have begun with the initial focus on surface infrastructure, while shaft development is scheduled to commence in 2027. The current 914-meter airstrip is undergoing expansion to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the challenging journey that led to this milestone. He recounted the company’s humble beginnings in 2012, where they had to start from scratch and encountered initial setbacks. However, their perseverance paid off in 2014 when they discovered significant mineralization on the eighth drill hole, marking the beginning of a transformative project in the energy sector.
Curyer emphasized the importance of the new mine in meeting the escalating demand for electricity driven by technological advancements and energy security concerns. He highlighted the pivotal role of nuclear energy in addressing this demand and underscored the strategic significance of uranium as a key global resource.
The company projects an annual uranium production capacity of up to 30 million pounds (over 13,000 tonnes) from the mine, representing around 20% of the current global supply. In March, the Canadian Nuclear Safety Commission granted NexGen a license for the construction of the mine and mill, with the operational license application pending.
Upon full operation, the mine is expected to generate 459 full-time jobs and operate for a lifespan of 24 years. Ongoing exploration activities in the area hint at promising uranium deposits that could be developed in the future. NexGen has secured endorsements from nearby Indigenous communities, including benefit agreements with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation-Saskatchewan, focusing on employment opportunities, training guarantees, and financial benefits.
Premier Scott Moe emphasized the positive impact of the project on the local community, providing not only jobs but long-term career opportunities for residents. He stressed the ethical development of resources like uranium to benefit the region while contributing to the global nuclear energy landscape.
In a separate 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. With estimated initial capital costs of $600 million, the mine is anticipated to commence production in 2028. Denison’s innovative approach involves utilizing an in-situ recovery method, aimed at dissolving uranium within the ore body for efficient extraction and processing.
The Denison mine is projected to operate for a decade, leveraging its proven and probable uranium reserves of 56.7 million pounds. This strategic initiative aligns with the company’s commitment to sustainable resource utilization and technological innovation in the uranium mining sector.