Construction has officially 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, situated approximately 130 kilometers north of La Loche. With an anticipated expenditure of $2.2 billion over a four-year construction period, this project is set to become one of the world’s largest new uranium sources.
The groundbreaking ceremony for the mine site took place on Thursday, attended by various dignitaries including Premier Scott Moe, former Prime Minister Stephen Harper, local leaders from Metis Nation-Saskatchewan, and Desnethé-Missinippi-Churchill River MP Buckley Belanger. The company has initiated construction activities on surface infrastructure, with shaft development scheduled to commence in 2027. Additionally, the existing 914-meter airstrip is being expanded to 1,780 meters.
CEO Leigh Curyer reflected on the journey leading up to this milestone, highlighting the challenges faced since their arrival in 2012. After initial setbacks, a breakthrough occurred in January 2014 with the discovery of mineralization on the eighth drill hole, marking the inception of what is now considered a significant energy fuel project globally.
NexGen envisions the mine as a crucial contributor to meeting the surging demand for electricity. The company estimates an annual production capacity of up to 30 million pounds (over 13,000 tonnes) of uranium, representing approximately 20% of the current global supply. Following the granting of a construction and mill license by the Canadian Nuclear Safety Commission in March, NexGen will proceed with seeking an operational license from the same commission.
Upon reaching full operational capacity, the mine is expected to generate 459 full-time employment opportunities and sustain operations for 24 years. Ongoing exploration activities in the vicinity hint at the potential for developing additional uranium deposits in the future. NexGen has secured endorsements from nearby Indigenous communities, including benefit agreements with various groups that encompass employment guarantees, local business contracts, and financial incentives.
Premier Scott Moe emphasized the significance of responsibly developing resources like uranium to benefit the local populace while contributing to the global energy sector’s clean fuel requirements. Uranium mining has been a significant employer in Saskatchewan, with over 2,300 individuals engaged in the industry, and nearly half of the workforce in northern uranium mines hailing from the region.
In a parallel development, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin, with an estimated initial capital outlay of $600 million and a production start target of 2028. Notably, the Denison mine is poised to be the first to utilize an in-situ recovery method, injecting an acidic solution into the ore body to extract uranium for surface extraction. The company foresees a 10-year operational lifespan, backed by an estimated 56.7 million pounds of proven and probable uranium reserves at the Phoenix project site.