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 part of the Athabasca Basin, located approximately 130 kilometers north of La Loche. The company is set to invest $2.2 billion during the four-year construction phase of what is considered one of the world’s largest emerging uranium sources.
Recently, a groundbreaking ceremony was held at the mine site, with Premier Scott Moe and former Prime Minister Stephen Harper among the speakers at the event. The construction activities have initiated with the development of surface infrastructure, and the commencement of shaft development is anticipated in 2027. Moreover, the existing 914-meter airstrip is currently being expanded to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the journey towards this milestone, mentioning the challenges faced during the initial phases. The company’s perseverance paid off when, in January 2014, they made a significant discovery of mineralization on the eighth drill hole, marking the inception of what is now recognized as a crucial energy project globally.
The uranium mine is positioned to address the escalating demand for electricity, according to Curyer, who emphasized the evolving landscape of energy needs driven by factors like artificial intelligence, advanced manufacturing, and energy security. The company estimates that the mine’s annual production could reach up to 30 million pounds (over 13,000 tonnes) of uranium, constituting approximately 20% of the current worldwide supply.
In a significant development earlier this year, the Canadian Nuclear Safety Commission granted NexGen a license for the construction of the mine and mill, with further licensing required for operational activities. Once operational, the mine is expected to generate 459 full-time job opportunities and operate for a projected 24-year span. Ongoing exploration in the vicinity suggests the potential development of additional uranium deposits 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 typically encompass provisions for employment opportunities, training guarantees, support for local businesses, and financial benefits.
Premier Scott Moe underscored the significance of such resource development endeavors for Saskatchewan, emphasizing the ethical and mutually beneficial approach taken to ensure the well-being of local communities. He highlighted the vital role of uranium mining in meeting global energy demands and stressed the importance of sustainable growth opportunities for the region.
In a parallel development, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern part of the Athabasca Basin, contributing to the burgeoning uranium mining sector in northern Saskatchewan. The projected initial capital outlay for the Denison mine stands at $600 million, with production slated to commence in 2028.
Denison’s innovative approach involves the potential application of an in-situ recovery method, aimed at dissolving uranium in the ore body by injecting an acidic solution, facilitating its retrieval to the surface. The company envisions a ten-year operational timeline for the mine, leveraging its substantial proven and probable uranium reserves estimated at 56.7 million pounds, as outlined on the Phoenix project website.
