Construction has commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is constructing an underground uranium mine in the southern Athabasca Basin, located approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion during the four-year construction phase of this significant new uranium source globally.
The groundbreaking ceremony for the mine took place on Thursday, where Premier Scott Moe, former Prime Minister Stephen Harper, and local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger addressed the attendees. The initial focus is on developing surface infrastructure, with shaft development slated to commence in 2027. The existing 914-meter airstrip is currently being expanded to 1,780 meters.
NexGen CEO Leigh Curyer reflected on the project’s journey, noting the challenges faced since their arrival in 2012 when initial drilling efforts yielded no mineralization. However, a breakthrough occurred in 2014 when mineralization was discovered on the eighth drill hole, marking the start of what Curyer described as the world’s most crucial energy fuel project.
Highlighting the increasing global demand for electricity, Curyer emphasized the role of nuclear energy in meeting this demand, underscoring the strategic importance of uranium. The mine is projected to have an annual production capacity of up to 30 million pounds (over 13,000 tonnes) of uranium, accounting for about 20% of the current global supply.
In March, the Canadian Nuclear Safety Commission granted NexGen a license for constructing the mine and mill. The company will subsequently seek a license for its operation. Once operational, the mine is expected to generate 459 full-time jobs and operate for 24 years, with ongoing exploration activities in the vicinity potentially leading to the development of additional uranium deposits.
NexGen has secured endorsements from Indigenous communities affected by the project, 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 opportunities, contracts for local businesses, and financial benefits.
Premier Scott Moe emphasized the economic opportunities the mine presents for the region, highlighting the creation of long-term careers and community growth. With uranium mining already employing over 2,300 individuals in the province, Moe stressed the importance of ethically developing resources to support clean nuclear power generation.
Additionally, 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 investment of $600 million and potential production commencement in 2028. The Denison mine could pioneer the use of an in-situ recovery method for uranium extraction, aiming to operate for a decade based on its significant uranium reserves.
The collaboration between NexGen and Indigenous communities to construct a hotel in La Loche further underscores the positive impact and partnerships emerging from these mining projects in northern Saskatchewan.