Construction has officially commenced on a new uranium mine in northern Saskatchewan. NexGen Energy Ltd. is initiating the development of an underground uranium mine in the southern Athabasca Basin, situated approximately 130 kilometers north of La Loche. The company anticipates investing $2.2 billion over the four-year construction period in establishing one of the world’s largest new uranium sources.
The groundbreaking ceremony for the mine was conducted on Thursday, with Premier Scott Moe and former prime minister Stephen Harper addressing the audience. Local leaders from Metis Nation-Saskatchewan and Desnethé-Missinippi-Churchill River MP Buckley Belanger also participated in the event.
Construction activities have commenced on surface infrastructure, with shaft development scheduled to begin in 2027. The current 914-meter airstrip is undergoing expansion to 1,780 meters. NexGen CEO Leigh Curyer expressed that reaching this point has been a significant journey for the company.
Curyer recounted the challenges faced during the early stages of exploration, highlighting the breakthrough in discovering mineralization in 2014. He emphasized the crucial role of the mine in meeting the increasing demand for electricity globally, noting the strategic importance of uranium as an energy resource.
The company estimates that the mine could yield up to 30 million pounds (over 13,000 tonnes) of uranium annually, representing about 20% of the current global supply. NexGen secured endorsements from Indigenous communities in proximity to the project site, signing benefit agreements with various nations for mutual benefits.
Premier Scott Moe emphasized the economic opportunities the mine presents for the region, providing not just jobs but long-term careers for residents. Uranium mining is a significant employer in Saskatchewan, with over 2,300 people in the province working in the sector.
In a related development, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin. The initial capital investment for the Denison mine is estimated at $600 million, with production expected to commence in 2028. The company plans to utilize an in-situ recovery method for uranium extraction, with a projected operational lifespan of 10 years based on proven and probable reserves.