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, situated approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion during the four-year construction phase of one of the world’s largest new uranium sources.
A groundbreaking ceremony was held at the mine site on Thursday, attended by Premier Scott Moe, former Prime Minister Stephen Harper, as well as local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger. Initial construction activities are focused on surface infrastructure, with shaft development slated to commence in 2027. The existing 914-meter airstrip is being expanded to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the journey to reach this point, noting the challenges faced since their arrival in 2012. After initial setbacks, a significant mineral discovery was made in January 2014, marking the start of what is now considered a crucial energy project on a global scale.
The new mine is expected to address the escalating demand for electricity, driven by advancements in technology and energy security. NexGen estimates an annual production capacity of up to 30 million pounds (over 13,000 tonnes) of uranium, representing about 20% of the current global supply.
In March, the Canadian Nuclear Safety Commission granted NexGen a construction and milling license, with an operational license application pending. Once operational, the mine is projected to create 459 full-time jobs and operate for 24 years. Ongoing exploration in the region suggests the potential for additional uranium deposits to be developed in the future.
Endorsements from Indigenous communities in the project’s vicinity have been secured, with benefit agreements in place with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation-Saskatchewan. These agreements typically encompass employment opportunities, training initiatives, support for local businesses, and financial benefits.
Premier Scott Moe emphasized the significance of responsibly developing resources like uranium to meet global energy demands while benefiting local communities. The partnership between NexGen and Indigenous groups also extends to the construction of a 59-bed hotel in La Loche.
Another uranium mining project is underway in northern Saskatchewan, as Denison Mines Corp. progresses with the Phoenix uranium mine and mill site in the eastern Athabasca Basin. With estimated initial costs of $600 million, production at the Denison mine could commence by 2028, utilizing an innovative in-situ recovery method to extract uranium reserves. Denison plans to operate the mine for a decade, leveraging its substantial uranium reserves for sustainable production.