Construction has officially commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is establishing an underground uranium mine in the southern Athabasca Basin, approximately 130 kilometers north of La Loche. The company is anticipating an expenditure of $2.2 billion during the four-year construction phase of what is projected to become one of the world’s largest uranium sources.
A groundbreaking ceremony was conducted at the mine site by the company on Thursday. Premier Scott Moe, former prime minister Stephen Harper, local leaders from Metis Nation-Saskatchewan, and Desnethé-Missinippi-Churchill River MP Buckley Belanger were among the speakers at the event.
Initial construction activities are focusing on surface infrastructure, with shaft development slated to commence in 2027. The existing 914-meter airstrip is being extended to 1,780 meters.
Reflecting on the journey leading up to this point, NexGen CEO Leigh Curyer mentioned the challenges faced by the company since their arrival in 2012. After initial setbacks, a significant breakthrough was made in 2014 when mineralization was discovered on the eighth drill hole, marking the inception of what is now deemed a crucial energy fuel project globally.
The new mine is crucial in meeting the escalating demand for electricity. Curyer emphasized the evolving landscape driven by factors such as artificial intelligence, advanced manufacturing, and energy security, positioning nuclear energy and uranium as strategic resources.
NexGen estimates an annual uranium production capacity of up to 30 million pounds (over 13,000 tonnes), accounting for approximately 20% of the current global supply. The Canadian Nuclear Safety Commission has granted NexGen a construction license for the mine and mill, with an operational license application pending.
Once operational, the mine is expected to generate 459 full-time jobs and operate for a projected 24-year lifespan. Ongoing exploration in the area hints at the potential development of nearby uranium deposits in the future.
Endorsements from Indigenous communities impacted by the project have been secured, with benefit agreements signed with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan. The agreements, though confidential, typically encompass employment guarantees, training opportunities, support for local businesses, and financial benefits.
Highlighting the regional significance, Premier Scott Moe underscored the prospects the mine brings for long-term careers and community growth. Uranium mining in Saskatchewan already employs over 2,300 individuals, with nearly half of the workforce from northern communities, as per the Saskatchewan Mining Association.
Moe emphasized the ethical development of resources like uranium, emphasizing the role of clean fuel for nuclear power in the global energy landscape which Saskatchewan aims to contribute to.
In addition to the mining venture, NexGen is collaborating with Clearwater River Dene Nation and Métis Nation—Saskatchewan Local 39 on the construction of a 59-bed hotel in La Loche. Meanwhile, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill in the eastern Athabasca Basin, with an estimated commencement of production in 2028, utilizing an innovative in-situ recovery method.