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 over the four-year construction phase to develop one of the world’s largest new uranium sources.
A groundbreaking ceremony took place at the mine site, attended by Premier Scott Moe, former Prime Minister Stephen Harper, 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 current 914-meter airstrip is being extended to 1,780 meters.
NexGen CEO Leigh Curyer described the journey leading to this milestone. He recounted the challenges faced since their arrival in 2012, highlighting the breakthrough moment in 2014 when mineralization was discovered on the eighth drill hole, marking the inception of what is now deemed a significant energy fuel project.
The mine is positioned to address the escalating demand for electricity, as highlighted by Curyer, who emphasized the vital role of nuclear energy in meeting this demand. The estimated annual production capacity of the mine is up to 30 million pounds (over 13,000 tonnes) of uranium, which could contribute around 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. The fully operational mine is expected to generate 459 full-time jobs over a 24-year lifespan. Ongoing exploration activities in the region suggest the potential development of additional uranium deposits in the future.
NexGen has secured endorsements from Indigenous communities in the project’s vicinity, signing benefit agreements with Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation-Saskatchewan. These agreements typically encompass employment guarantees, training programs, support for local businesses, and financial benefits.
Premier Scott Moe emphasized the economic opportunities this project brings to the region, highlighting the potential for sustainable careers and community growth. Uranium mining is a significant employer in Saskatchewan, with over 2,300 individuals employed in the sector, and nearly half of the workforce in northern uranium mines comprising local residents.
Moe stressed the importance of responsible resource development in Saskatchewan, emphasizing the dual benefits of supporting local communities and meeting global energy demands through clean nuclear fuel. Additionally, NexGen has collaborated with Indigenous groups to construct a 59-bed hotel in La Loche, further contributing to local development efforts.
Meanwhile, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin. Initial capital investment is estimated at $600 million, with production slated to commence in 2028. The Denison mine is expected to utilize an in-situ recovery method, aiming to extract uranium reserves estimated at 56.7 million pounds over a 10-year operational period.