As the world seeks solutions to the climate crisis, nuclear energy is experiencing a renaissance, with Canada positioned to become a dominant player in the industry. The country’s vast reserves of high-grade uranium, particularly in the Athabasca Basin, have attracted global attention and investment, positioning Canada as a potential “nuclear superpower.” Leigh Curyer, CEO of NexGen and a seasoned professional in uranium mining, has seen the industry rebound significantly over the past five years. The Fukushima nuclear disaster in 2011 had stalled uranium markets, but recent high-profile endorsements of nuclear power from figures like Bill Gates, along with policy shifts in the UK and EU, have restored confidence in nuclear energy. This resurgence has led to a remarkable 200% increase in uranium prices, marking it as one of the year’s top-performing commodities.
NexGen is spearheading Canada’s nuclear ambitions with its massive project in Saskatchewan’s Athabasca Basin, a region renowned for some of the world’s highest-quality uranium deposits. With an estimated value nearing $4 billion, NexGen’s mine could become operational by 2028, potentially making Canada the world’s top uranium producer and unseating Kazakhstan from its current leading position. Recognizing this potential, numerous companies have begun exploring in the Athabasca Basin, reactivating mines and launching new ventures to capitalize on the renewed demand for uranium. The Canadian mining sector envisions the country playing a pivotal role in nuclear energy’s future, as nearly 24 countries committed at COP28 to triple their nuclear energy output by 2050.
Nuclear energy’s primary appeal lies in its minimal carbon emissions compared to fossil fuels, which remain a dominant source of global power. The World Nuclear Association reports that nuclear power constitutes about 10% of global electricity production, while gas and coal collectively account for over half. Recent climate conferences, including COP29, have spotlighted the need for increased funding for nuclear initiatives to meet climate targets. A recent UN report emphasized that without accelerated investment in nuclear power, efforts to curb global temperature rise could fall short.
Canada’s role as a uranium supplier is underscored by geopolitical tensions, particularly the fallout from Russia’s invasion of Ukraine. The US, heavily reliant on Russian uranium, has been urgently seeking alternative sources, creating an opportunity for Canada to fill the gap. Curyer argues that Canada’s uranium production could play a vital role in meeting US energy needs, particularly as the US seeks greater energy security.
The Athabasca Basin’s uranium is notable for its high-grade purity, giving Canada a competitive edge over other major producers, such as Kazakhstan and Australia. Markus Piro, a nuclear engineering professor at McMaster University, highlights Canada’s stringent regulations for uranium exports, ensuring that it is only used for peaceful power generation. Canada’s nuclear sector is vertically integrated, from mining to fuel production, positioning it as a one-stop solution for nuclear fuel. After extraction, uranium is processed into “yellowcake” and can be enriched either domestically or abroad, allowing Canada to meet the fuel needs of nuclear reactors worldwide.
Canada is currently the world’s second-largest uranium producer, accounting for around 13% of the global supply, but NexGen’s mine could boost that to an impressive 25%. Cameco, a Canadian uranium giant, recently reactivated two mines in Saskatchewan, aiming to increase output to meet the rising demand. CEO Tim Gitzel is optimistic, envisioning Canada as a nuclear superpower capable of meeting global energy demands.
However, nuclear power is not without its detractors. Environmental organizations argue that nuclear projects are costly and slow to build, which they believe is incompatible with the urgency of the climate crisis. The World Nuclear Association reports that while 60 nuclear reactors are under construction across 16 countries, with 110 more planned, many of these projects will not be operational until the end of the decade. Additionally, over 100 nuclear plants have been decommissioned globally in the past two decades, including facilities in New York and Quebec. In British Columbia, nuclear power and uranium mining have been banned since 1980.
Safety concerns persist among the public, particularly regarding radioactive waste and potential accidents. Professor Piro concedes that while the risk is not zero, advancements in technology have made nuclear energy significantly safer. Gitzel notes that Canadian public support for nuclear energy has grown, as reflected in a 2023 Ipsos poll showing 55% approval.
Despite previous boom-and-bust cycles, industry leaders like Curyer believe the demand for uranium will continue to grow. NexGen plans to begin construction of its mine in 2024, pending regulatory approval, as numerous other companies actively explore Saskatchewan’s rich uranium deposits. However, as Gitzel cautions, not all projects will reach the production stage, as the regulatory process for new mines can be lengthy.
For Curyer and the Canadian nuclear industry, realizing these projects is crucial not only for Canada’s future as a uranium superpower but for addressing the rising global demand for clean energy sources.
