NexGen breaks ground on major uranium mine in northern Sask.

Construction has officially started on a new uranium mine in northern Saskatchewan.

NexGen Energy Ltd. is building an underground uranium mine in the southern Athabasca Basin about 130 kilometres north of La Loche. The company expects to spend $2.2 billion over the four-year construction phase of one of the world's largest new sources of uranium.

On Thursday, the company held a groundbreaking ceremony at the mine site. Premier Scott Moe and former prime minister Stephen Harper spoke at the event, as did local leaders from Metis Nation-Saskatchewn and Desnethé-Missinippi-Churchill River MP Buckley Belanger.

Construction has started on surface infrastructure and shaft development is expected to start in 2027. The current 914-metre airstrip is being expanded to 1,780 metres.

He said they first arrived in 2012, having to set up everything from scratch. They dug 13 holes, and no mineralization was happening. So, they left.

"The winter of 2014, in January and on the eighth hole, the very first drill hole, actually — just over there. There had been no drilling for a 4½ kilometre radius. And on the very first hole, we hit mineralisation," Curyer said.

"We didn't know it at the time, but we were on top of what has become the world's most important energy fuel project," he said.

Nuclear regulator grants licence for Nexgen to build uranium mine in northern Sask.

The mine will help meet the growing demand for electricity, Curyer said.

"The world is changing. Artificial intelligence, advanced manufacturing, electrification, and energy security are driving unprecedented demand for electricity," he said in a statement.

"Nuclear energy has become key to meeting that demand — and with it, uranium has become one of the world’s most strategic resources."

The company estimates the mine could produce up to 30 million pounds (over 13,000 tonnes) of uranium annually, or around 20 per cent of the current global supply.

In March, the Canadian Nuclear Safety Commission granted NexGen a licence to construct the mine and mill. The company will have to apply to the commission for a licence to operate it.

When fully operational, NexGen says the mine will create 459 full-time jobs and will have a life span of 24 years. Exploration in the area is ongoing, and promising uranium deposits nearby could be developed in the future.