Construction has begun on one of Canada’s most ambitious uranium projects of the decade. NexGen Energy has started work on the underground Rook I uranium mine in Saskatchewan, which is designed to produce up to 30 million pounds of uranium per year. That would place the project among the world’s largest uranium supply operations.
The project is estimated to cost C$2.2 billion, equivalent to approximately US$1.6 billion. Construction of the underground mine and processing plant is expected to take around four years. By comparison, Canada’s existing flagship operation, Cameco’s McArthur River–Key Lake, is licensed for annual production of 25 million pounds, while its 2026 production guidance is lower at 14–16.5 million pounds.
Construction activity is already well underway. Major earthworks have been completed, a temporary 3,000-foot airstrip has been commissioned, and the worker camp has been expanded and occupied. By the end of the year, NexGen plans to complete a permanent 5,840-foot runway, while sinking of the main mine shaft is scheduled to begin in 2027.
The project’s key regulatory hurdles have also been cleared. The Canadian Nuclear Safety Commission (CNSC) approved the environmental assessment in March and issued the construction license, removing the final major administrative obstacle.
A 2021 feasibility study outlined highly attractive project economics. Rook I was projected to operate for 11 years, producing approximately 233.6 million pounds of uranium over its mine life. The study estimated a net present value of C$3.5 billion at an 8% discount rate and an internal rate of return of 52.4%. The projected payback period was less than one year.
The launch of Rook I comes amid a global revival of interest in nuclear power. Rising electricity demand is prompting governments to reconsider the strategic importance of uranium, while Canada is seeking to strengthen its position as a reliable supplier of nuclear fuel.
NexGen is entering the global uranium race with a project of international scale. Once roughly four years of construction are complete, the Saskatchewan mine could challenge some of the industry’s established producers.
Source: MINING.COM
Image: NexGen Energy
