In recent years, Canada has found itself on the verge of becoming a central player in the nuclear energy landscape. With its vast reserves of high-grade uranium, particularly in the renowned Athabasca Basin, the country has a unique opportunity to establish itself as a leading supplier of nuclear fuel. This potential is further amplified by the increasing global demand for nuclear energy, driven by a worldwide push for low-carbon solutions to mitigate climate change. The country’s mining industry is at the forefront of this shift, with companies like NexGen poised to transform Canada’s role in the energy sector.
The change in momentum for uranium began in the years following the 2011 Fukushima disaster, which severely tarnished the global perception of nuclear power. As a result, uranium prices plummeted, and the industry saw a marked slowdown. However, the narrative around nuclear energy has changed dramatically in recent years, particularly since high-profile figures like Bill Gates and policy shifts in the UK and the European Union have reaffirmed the role of nuclear power as a crucial tool in tackling climate change. In 2018, Gates highlighted nuclear energy as an ideal solution for addressing carbon emissions, while the UK government’s announcement to generate at least 25% of its energy from nuclear by 2050 further solidified the sector’s importance. Most recently, the European Union recognized nuclear power as a climate-friendly energy source, which has bolstered confidence in the uranium market. This renewed optimism has seen uranium prices soar by over 200%, making it one of the top-performing commodities of the year.
At the center of this resurgence is NexGen, a Canadian mining company spearheading the development of the country’s largest uranium mine. Located in the heart of the Athabasca Basin in Saskatchewan, NexGen’s project is set to become operational by 2028, though the company’s valuation has already surged to nearly $4 billion. Once fully operational, the mine could potentially push Canada ahead of Kazakhstan, the current leader in uranium production, to become the world’s largest supplier of uranium. This shift in market dynamics is being closely watched by investors and companies across the globe, many of whom are seeking to capitalize on the boom in nuclear energy demand. Several other mining companies are already in various stages of exploration in the region, while established players like Cameco, which has been operating in Saskatchewan for over 30 years, are ramping up production at their existing mines.
The importance of Canada’s uranium industry extends far beyond its borders. As the global demand for nuclear energy surges, driven by countries committing to tripling their nuclear output by 2050, Canada’s role in the uranium supply chain is becoming increasingly critical. According to the World Nuclear Association, nuclear energy accounts for about 10% of the world’s electricity production, while fossil fuels, such as natural gas and coal, still make up the majority of the energy mix. This dynamic is shifting, however, as international climate targets become more stringent, particularly in the wake of the COP28 summit, where nearly two dozen countries vowed to accelerate their nuclear energy expansion. The urgency of this transition has been underscored by the recent geopolitical disruptions, particularly Russia’s invasion of Ukraine, which has destabilized global uranium supply chains and prompted the US to seek alternatives to Russian-supplied uranium. NexGen’s Curyer believes that his mine will be pivotal in securing stable uranium supplies for the US in the years to come, as the country increasingly looks to domestic sources to reduce its dependence on foreign suppliers.
What sets Canada’s uranium apart from that of other major producers is its exceptional grade. Uranium found in the Athabasca Basin is considered some of the highest-quality in the world, with a concentration that is far superior to that of uranium extracted from other regions. This high-grade material not only makes Canadian uranium more attractive to buyers but also positions the country as a leader in the global nuclear fuel supply chain. Professor Markus Piro, a nuclear engineering expert at McMaster University, emphasizes that Canada’s uranium is exclusively used for peaceful purposes, in compliance with the country’s strict export regulations. Moreover, Canada is one of the few nations in the world that operates a fully integrated nuclear fuel supply chain, from uranium extraction to fuel fabrication, which further strengthens its competitive advantage in the industry.
Currently, Canada is the world’s second-largest producer of uranium, contributing around 13% of the global supply. NexGen’s mine, however, is expected to significantly boost this figure, pushing Canada’s share of global uranium production to an impressive 25%. With Cameco’s increased production and new companies entering the market, the country’s uranium industry is poised for significant growth in the coming years. Despite this positive outlook, nuclear energy remains a contentious issue for some environmental groups, who argue that nuclear projects are too costly and too slow to meet the urgency of the climate crisis. The timeline for developing nuclear plants remains lengthy, with many projects expected to take years to come online. This slow pace, coupled with the environmental risks posed by nuclear waste, has prompted some to question the viability of nuclear energy as a solution to the pressing climate challenge.
Despite these concerns, Canada’s nuclear industry continues to enjoy broad public support. A 2023 Ipsos poll revealed that 55% of Canadians are in favor of nuclear power, reflecting growing confidence in the safety and efficacy of the technology. The industry has made significant strides in improving safety and reliability since past accidents, such as the Fukushima disaster, and has taken steps to address concerns about radioactive waste. As public attitudes shift, the industry remains focused on ensuring that Canada’s uranium resources are harnessed responsibly and sustainably, in line with the growing global demand for clean energy solutions.
