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, approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion during the four-year construction phase, establishing one of the largest new uranium sources globally.
A groundbreaking ceremony was held at the mine site on Thursday, with Premier Scott Moe, former prime minister Stephen Harper, local leaders from Metis Nation-Saskatchewan, and Desnethé-Missinippi-Churchill River MP Buckley Belanger in attendance. Initial work has begun on surface infrastructure, and shaft development is scheduled to commence in 2027, with plans to expand the current 914-meter airstrip to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the challenging journey to reach this point, mentioning the discovery of mineralization on the eighth drill hole in 2014 after initial setbacks. Curyer emphasized the significance of the project in meeting the rising demand for electricity, stating that nuclear energy plays a crucial role in addressing this demand, making uranium a strategic global resource.
The company projects an annual production capacity of up to 30 million pounds (over 13,000 tonnes) of uranium, representing around 20% of the current global supply. NexGen was granted a license by the Canadian Nuclear Safety Commission to construct the mine and mill, with future operations requiring a separate license application.
Upon full operation, the mine is expected to create 459 full-time jobs and operate for a lifespan of 24 years. NexGen has received support from Indigenous communities impacted by the project and has signed benefit agreements with several local nations, providing various benefits such as employment opportunities and financial support.
Premier Scott Moe highlighted the economic opportunities and the importance of resource development in benefiting local communities. Uranium mining in Saskatchewan currently employs over 2,300 individuals, with a significant proportion residing in the northern region. Moe emphasized the ethical development of resources to support clean energy initiatives and global nuclear power requirements.
In parallel, Denison Mines Corp. is constructing the Phoenix uranium mine and mill site in the eastern Athabasca Basin, with an estimated initial cost of $600 million and potential production commencement in 2028. The mine could pioneer the use of an in-situ recovery method, with plans to operate for ten years based on the estimated uranium reserves available.
The development of these uranium mines signifies a significant step towards meeting energy demands, fostering economic growth, and supporting sustainable resource utilization in Saskatchewan.
