Construction has 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, located approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion during the four-year construction period for one of the world’s largest new uranium sources.
A groundbreaking ceremony was held at the mine site on Thursday, where 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. Initial construction activities are focusing on the surface infrastructure, with shaft development scheduled to begin in 2027. The current 914-meter airstrip is being extended to 1,780 meters.
NexGen CEO Leigh Curyer highlighted the company’s journey to reach this milestone. He mentioned the challenges faced since their arrival in 2012, recalling the breakthrough in January 2014 when mineralization was discovered on the eighth drill hole after previous unsuccessful attempts.
The new mine is expected to contribute to meeting the escalating demand for electricity, emphasized Curyer. He underscored the significance of nuclear energy in addressing the rising demand for electricity globally, making uranium a critical resource. The estimated annual production capacity of the mine is up to 30 million pounds (over 13,000 tonnes), which could account for about 20% of the current global uranium 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 a lifespan of 24 years. Ongoing exploration in the vicinity indicates potential for developing additional uranium deposits in the future.
Endorsements from Indigenous communities near the project site have been secured by NexGen, with benefit agreements signed with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. These agreements typically include provisions for employment, training opportunities, support for local businesses, and financial benefits.
Premier Scott Moe expressed optimism about the economic opportunities the mine will bring to the region, emphasizing the importance of ethically developing resources to benefit local communities and contribute to clean energy production. Uranium mining currently employs over 2,300 individuals in Saskatchewan, with nearly half of the workers residing in the northern region, according to the Saskatchewan Mining Association.
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. The estimated initial capital investment for the Denison mine is $600 million, with production potentially commencing in 2028. Notably, the Denison mine may pioneer the use of an in-situ recovery method, utilizing an acidic solution to extract uranium from the ore body.
Denison plans to operate the mine for a decade, with an estimated reserve of 56.7 million pounds of uranium. This initiative aligns with the growing focus on sustainable and efficient uranium extraction methods in the mining sector.