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, approximately 130 kilometers north of La Loche. The company plans to invest $2.2 billion over the next four years into developing one of the world’s largest uranium sources.
A groundbreaking ceremony was held at the mine site, attended by Premier Scott Moe, former Prime Minister Stephen Harper, and local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger. Initial construction activities are focusing on surface infrastructure, with shaft development slated to commence in 2027. The existing 914-meter airstrip is being expanded to 1,780 meters.
NexGen CEO Leigh Curyer described the journey to this point, recalling the company’s initial struggles in 2012 when no mineralization was found after drilling 13 holes. However, in 2014, they struck mineralization on the eighth drill hole, marking the beginning of what Curyer referred to as a crucial energy project.
The new mine is expected to help fulfill the increasing global demand for electricity, with Curyer emphasizing the significance of uranium as a strategic resource in meeting this demand. NexGen estimates the mine’s potential annual uranium production at up to 30 million pounds, representing around 20% of the current global supply.
The Canadian Nuclear Safety Commission granted NexGen a license for mine and mill construction in March. The company will need to apply for an operational license once construction is complete. When operational, the mine is projected to create 459 full-time jobs and operate for 24 years. Ongoing exploration in the region may lead to the development of additional uranium deposits.
NexGen has secured support from nearby Indigenous communities impacted 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 provisions for employment, training opportunities, and financial benefits for the communities involved.
Premier Scott Moe highlighted the economic opportunities the mine brings to the region, emphasizing the importance of responsible resource development. Uranium mining in Saskatchewan already employs over 2,300 individuals, with nearly half of them being northern residents, according to the Saskatchewan Mining Association.
In addition to the uranium mine, NexGen is collaborating with Indigenous communities to construct a 59-bed hotel in La Loche. Meanwhile, another uranium mine, the Phoenix uranium mine and mill site, is under construction in the eastern Athabasca Basin by Denison Mines Corp. This mine could be the first to utilize an in-situ recovery method, with estimated initial costs of $600 million and potential production starting in 2028.
Denison plans to operate the mine for a decade, with an estimated 56.7 million pounds of proven and probable uranium reserves. The development of these mines signifies a significant step forward in meeting global energy demands through responsible resource extraction practices.