Construction has officially commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is initiating the development of an underground uranium mine in the southern Athabasca Basin, situated approximately 130 kilometers north of La Loche. The company plans to invest $2.2 billion over the span of a four-year construction period to establish one of the world’s largest uranium sources.
During a groundbreaking ceremony held at the mine site, Premier Scott Moe and former Prime Minister Stephen Harper, alongside local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger, delivered speeches. Initial construction activities are focusing on surface infrastructure, with shaft development slated to commence in 2027. Moreover, the current 914-meter-long airstrip is undergoing expansion to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the journey leading up to this milestone, highlighting the company’s initial struggles and subsequent breakthroughs in mineral exploration. The discovery of significant mineralization in the region marked a pivotal moment for NexGen, positioning the project as a crucial global energy resource initiative.
The new mine is positioned to address the escalating demand for electricity, as emphasized by Curyer, who underscored the evolving landscape of energy requirements driven by technological advancements and energy security needs. The company projects an annual uranium production capacity of up to 30 million pounds, representing approximately 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 expected to generate 459 full-time employment opportunities and operate for a projected 24-year lifespan. Ongoing exploration activities in the vicinity indicate the potential for additional uranium deposits to be developed in the future.
Endorsements from Indigenous communities adjacent to or impacted by the project have been secured, with benefit agreements signed with communities such as Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation-Saskatchewan. These agreements, while confidential, typically encompass provisions for employment, training, local business contracts, and financial benefits.
Premier Scott Moe emphasized the significance of resource development in Saskatchewan, highlighting the ethical and beneficial approach adopted to support local communities and contribute to global clean energy initiatives. The importance of uranium mining in the province was underscored, with a substantial portion of the workforce hailing from northern regions.
Additionally, NexGen has collaborated with Clearwater River Dene Nation and Métis Nation-Saskatchewan Local 39 to construct a 59-bed hotel in La Loche, further enhancing local infrastructure. Meanwhile, another uranium mine project is underway in northern Saskatchewan, led by Denison Mines Corp., with the construction of the Phoenix uranium mine and mill site in progress in the eastern Athabasca Basin.
The Denison mine, with estimated initial capital costs of $600 million, aims to commence production in 2028 and could potentially be the first uranium mine to implement an in-situ recovery method. This innovative approach involves injecting an acidic solution into the ore body to dissolve uranium for extraction to the surface. With proven and probable uranium reserves estimated at 56.7 million pounds, Denison plans to operate the mine for a decade, contributing to the region’s mining landscape and energy resources sector.