Construction has officially commenced on a new uranium mine in the northern region of Saskatchewan. NexGen Energy Ltd. is in the process of constructing an underground uranium mine in the southern Athabasca Basin, situated approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion during the four-year construction phase of what is considered one of the largest upcoming uranium sources globally.
Recently, a groundbreaking ceremony was held at the mine site. Premier Scott Moe and former prime minister Stephen Harper were notable speakers at the event, alongside local leaders from Metis Nation-Saskatchewan and Member of Parliament Buckley Belanger from Desnethé-Missinippi-Churchill River. Initial construction activities are focused on the surface infrastructure, with shaft development slated to commence in 2027. Moreover, the existing 914-meter airstrip is being extended to 1,780 meters.
CEO Leigh Curyer reflected on the journey leading up to this point, highlighting the challenges faced and eventual success. The company’s exploration efforts initially yielded no mineralization, prompting them to leave the site. However, in January 2014, on the eighth drill hole, significant mineralization was discovered, marking the inception of what Curyer referred to as a pivotal energy project on a global scale.
The new mine is expected to address the escalating demand for electricity, with Curyer emphasizing the evolving landscape of energy requirements driven by factors such as artificial intelligence, advanced manufacturing, and energy security. NexGen estimates an annual production capacity of up to 30 million pounds of uranium, representing around 20% of the current global supply.
In March, the Canadian Nuclear Safety Commission granted NexGen a construction and milling license for the project, with an operational license application pending. Once operational, the mine is projected to generate 459 full-time job opportunities and sustain operations for 24 years. Ongoing exploration activities in the vicinity hint at the potential for additional uranium deposits to be developed in the future.
NexGen has garnered support from Indigenous communities impacted by the project, signing benefit agreements with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. These agreements, although confidential in detail, typically encompass provisions for local employment, training, business contracts, and financial benefits.
Premier Scott Moe emphasized the significance of responsible resource development for the region, highlighting the dual aspect of benefiting local populations while contributing to global clean energy initiatives. Uranium mining in Saskatchewan already employs over 2,300 individuals, with nearly half of the workforce comprising northern residents, as reported by the Saskatchewan Mining Association.
Additionally, NexGen has collaborated with Clearwater River Dene Nation and Métis Nation—Saskatchewan Local 39 to establish a 59-bed hotel in La Loche, furthering community development efforts. Meanwhile, another uranium mining venture is underway in northern Saskatchewan, with Denison Mines Corp. progressing on the Phoenix uranium mine and mill site in the eastern Athabasca Basin.
Anticipated to start production in 2028, the Denison mine may pioneer the use of an in-situ recovery method, injecting an acidic solution into the ore body to extract uranium for surface retrieval. With initial costs estimated at $600 million, the Denison project is slated for a 10-year operational span, boasting sizable uranium reserves as outlined on the Phoenix project website.