What does a ‘nuclear renaissance’ mean for uranium mining in Saskatchewan?
Saskatchewan is home to the world’s largest high-grade uranium deposits — key to nuclear power — and the government is eager to attract mining companies. Here’s what you need to know
Saskatchewan has the largest deposits of high-grade uranium in the world, and Cameco's mines in the province include Cigar Lake, pictured here. As countries try to reduce greenhouse gas emissions, nuclear energy powered by uranium is seeing a resurgence.
The enthusiasm doesn’t stop at Canada’s borders. Around the world, 31 countries, including Canada and the U.S, have joined a declaration — stemming from last year’s United Nations climate change conference — to triple global nuclear energy capacity by 2050. Many have cited climate change and energy security as reasons to be gung ho for nuclear.
And that combination of international factors is driving a boom in uranium exploration and mining in northern Saskatchewan, home to the world’s largest deposits of high-grade uranium, an ideal fuel for reactors.
Only two uranium mines are operating in Saskatchewan at the moment — the only active mines in Canada — but more are waiting for approvals and the level of exploration and government enthusiasm is predicted to drive more activity in the sector.
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The boom will, as all booms do, come with big questions about who wins, who loses and whether the risks associated with nuclear power and uranium mining are worth it.
Those risks are not distributed evenly, and overwhelmingly impact Indigenous communities in the north. And while the rewards will favour governments and industry, those same communities will see increased job opportunities and investments.
Here’s a breakdown of what’s happening in northern Saskatchewan and what’s likely to come.
First, the basics: what’s uranium again?
Uranium is a radioactive element that is the main source of fuel for nuclear reactors. It’s a heavy metal found in ore that has to be mined, first getting rid of the waste rock in which it’s encased, and then refined so it can be used in reactors to produce electricity (that’d be nuclear fission).
Once uranium has been processed and refined, it is put into pellets that are used to fuel nuclear reactors. Photo: Frank Gunn / The Canadian Press
Saskatchewan stands alone for the purity of its deposits — the high grade of uranium ore underground. Essentially, there is more uranium in each bit of rock, meaning less waste, less work and more money per tonne of rock.
Natural Resources Canada says the deposits contain “grades that are 10 to 100 times greater than the average grade of deposits mined elsewhere in the world.”
Cameco, a major uranium producer based in Saskatoon, says its McArthur River mine, about 800 kilometres north of Saskatoon, has uranium grades 100 times higher than the global average.
How is uranium mined in Canada?
Uranium can be mined like any other ore, including using open pits dug to allow easier access to the resource (but that is increasingly rare). Both active uranium mines in Canada are underground and use a variety of techniques, including in-situ — where chemicals are pumped into the ground to dissolve the uranium and then the uranium is pumped it to the surface for processing.
The Key Lake site in Saskatchewan, where uranium was mined from 1983 to 1997 and milling ore continues to this day. Just two mills operate in the province, but renewed interest in uranium has brought increased exploration that could result in more mines and mills. Photo: Canadian Nuclear Safety Commission
The high grade of Saskatchewan’s uranium means a higher level of radioactivity. Due to this, humans are often shielded from the actual ore removal, including by the use of automated vehicles to transport the ore.
Along with Saskatchewan’s two active mines are two mills — facilities that process the ore into a concentrated uranium powder known as yellowcake for further refining.
How much uranium is in Saskatchewan?
A lot, though the exact estimate is difficult to pin down.
According to Cameco, estimated reserves in Saskatchewan alone are approximately 250 million kilograms (547 million pounds). That’d be around 10 per cent of the world’s total. But to inject a bit of confusion, the Saskatchewan government has different numbers. In its critical minerals strategy, it says the province is home to 1.5 billion pounds of recoverable uranium.
The Saskatchewan government has not responded to questions asking for clarification on the discrepancy.
Either way, most agree Saskatchewan has the world’s largest high-grade deposits, though overall it has the third-largest deposits in the world behind Australia and Kazakhstan. Last year, the province was the world’s second-largest uranium producer, after Kazakhstan.
Who owns Saskatchewan uranium?
Two companies operate the active uranium mines in Canada, Cameco and Orano (a French mutli-national whose Canadian subsidiary is headquartered in Saskatoon). The two companies share ownership, of varying degrees, of several mines and mills.
Several companies are actively exploring or applying for mine approvals in Saskatchewan, including NextGen Energy Ltd. That company was recently fined by the Canadian Nuclear Safety Commission for “site preparation and construction of a uranium mine and mill facility” without a licence — while it awaits approvals and an environmental impact assessment.
Sasatchewan Premier Scott Moe at the recent gathering of leaders to discuss Canada’s response to the threat of a trade war with the U.S. The United States is a major customer for Saskatchewan’s uranium, along with Europe. Photo: Sean Kilpatrick / The Canadian Press
Tepco Resources Inc., based in Japan, has a small share of the Cigar Lake Mine, which is majority-owned by Cameco.
The uranium itself, however, is technically owned by the province, which collects royalties for mining.
First Nations in northern Saskatchewan have complicated, ever-changing relationships with uranium mining companies. As with much resource extraction in Canada, government decisions to allow uranium mining in Treaty 8 and Treaty 10 territories have often happened without consideration for Treaty Rights or potential impacts on Indigenous ways of life.
In 2023, when Saskatchewan released its critical mineral strategy, the Federation of Sovereign Indigenous Nations, which represents 73 nations in the province, said that without consultation and built-in benefits sharing, the strategy infringed on inherent and Treaty Rights.
Nations insist work on their territories requires informed consent, and there have been blockades to prevent uranium exploration in the region without it — such as one in 2014, and two in 2021. Last fall, the non-profit Ya’ thi Néné, which represents both Athabasca Denesułiné First Nations and non-Indigenous municipalities in the region, signed an agreement with Eagle Plains Resources allowing exploration as long as its members get a fair share of revenue.
Where is uranium exported to?
The province saw a massive increase in exports to the European Union in 2023, particularly to Germany. According to the Saskatchewan Trade and Export Partnership’s latest report, overall exports increased by 220 per cent in 2023, to more than $1.7 billion.
So is Saskatchewan raking in a lot of money from its uranium deposits?
The CEO of Cameco has said he’s extremely optimistic about the future of the industry, with uranium prices significantly higher than they were a decade ago and governments around the world pledging to increase nuclear power.
“I’ve been in this game, the nuclear business, for over 40 years, and I don’t think I’ve ever seen the long-term fundamentals as good as they are today, like around the world,” Tim Gitzel told the Saskatoon Star Phoenix last December.
The company has seen increased revenue, but has spent a lot of money to acquire a builder of nuclear reactors (more on that in a minute).
The Saskatchewan government is making less money on uranium despite the increased production, while also spending millions on legacy mines that require remediation. Photo: Creative Bee Maja / Shutterstock
But that sunny outlook won’t necessarily translate into government revenue. In the 2023-24 budget year, the Saskatchewan government received approximately $90 million from uranium mining, down from its forecast of $122 million. In its annual report, the Ministry of Energy and Resources said the difference is “due primarily to lower basic and profit royalties.”
In its latest budget, however, the government noted expenditures for the Ministry of Environment and Natural Resources was $76.7 million higher “primarily due to an increase in liability associated with the remediation of mine sites, including the Lorado and Gunnar uranium mines and the Anglo-Rouyn base metals mine.” Like other industrial sites, uranium mines carry costly cleanup bills, but the actual price will depend on the site in question.
The cleanup costs for the decommissioned Gunnar mine in northern Saskatchewan are estimated at $280 million, paid for by the federal and provincial governments.
Is there more exploration for new uranium deposits now? Why?
The world’s newfound hunger for uranium translates into more exploration.
Developing a mine in northern Saskatchewan is a long and expensive process, with federal and provincial regulations dealing with everything from nuclear security to environmental impacts. Exploration is a lot easier, and so is staking a claim.
The Pickering Nuclear Power Generating station in Ontario is one of five reactors in Canada. Nations around the world have vowed to invest in nuclear power and Canadian provinces are investigating the feasibility of small modular reactors. Photo: Christopher Katsarov Luna / The Narwhal
The provincial critical minerals strategy, which is heavily focused on potash, uranium and helium, says exploration spending for uranium increased from $75 million in 2021 to an estimated $126 million in 2022.
Natural Resources Canada says the uranium market across the country has “experienced a remarkable resurgence recently,” with spending more than doubling between 2021 and 2023. Most of that is in Saskatchewan, according to the agency.
The Ministry of Energy and Resources did not return questions asking about the number of companies involved in exploration activities.
What’s the Saskatchewan’s government’s position on uranium?
The provincial government is pushing hard to expand the sector.
But it is also pushing hard to be a leader in the deployment of small modular reactors, relying on the promise of the largely untested technology to not only support a homegrown uranium industry, but also to solve its emissions-heavy electricity grid issues.
Cameco recently partnered with Brookfield Asset Management, a global investment firm headquartered in Toronto, to buy Westinghouse Electric Company, a U.S.-based producer of reactors.
Those companies signed a memorandum of understanding with the government to evaluate the potential of their reactors for the province. SaskPower, the Crown corporation that runs the provincial grid, has also signed a deal with GE Hitachi to build a small modular reactor.
What are the risks of uranium mining?
There will always be a risk of radioactive contamination on the landscape, as well as human health impacts from uranium mining.
Tailings, the waste product from mining, are radioactive and must be stored properly in ponds that cap the radioactive material. Historical techniques, where waste was piled in the open air, led to contaminated water and air.
Active mines can pose a health risk to miners — uranium is radioactive, after all — but steps have been taken to prevent direct contact and increase the use of safety equipment and monitoring.
Right now, nuclear waste is stored above ground in dry containers, but experts say an underground repository would be safer in the long run. Photo: Supplied by Ontario Power Generation
The Canadian Nuclear Safety Commission says the risk to the public and to workers in both uranium exploration and mining is low with the use of contemporary techniques and protocols. A study currently underway by the commission is looking at historical and current worker data to determine risks.
But risks can also impact nearby communities if radiation escapes into the environment, posing a threat to air and water. Leaky tailings, which can remain radioactive for thousands of years, could contaminate water.
Are uranium mines cleaned up?
These mines don’t just go away when they shut down. The Canadian Nuclear Safety Commission lists 19 closed uranium mines with tailings that are managed either by their former owners, the federal government or the provincial government. Four of these inactive mines are in Saskatchewan.
There are also 78 older mines without tailings that are exempted from the federal regulations, according to the commission.
“These idle mines are, in all physical and radiological characteristics, indistinguishable from conventional mines,” it says.
Despite the low risk of some of those older mines, others will cost hundreds of millions of dollars to remediate.
Another year of keeping a close watch
Here at The Narwhal, we don’t use profit, awards or pageviews to measure success. The thing that matters most is real-world impact — evidence that our reporting influenced citizens to hold power to account and pushed policymakers to do better.
And in 2024, our stories were raised in parliaments across the country and cited by citizens in their petitions and letters to politicians.
In Alberta, our reporting revealed Premier Danielle Smith made false statements about the controversial renewables pause. In Manitoba, we proved that officials failed to formally inspect a leaky pipeline for years. And our investigations on a leaked recording of TC Energy executives were called “the most important Canadian political story of the year.”
Here at The Narwhal, we don’t use profit, awards or pageviews to measure success. The thing that matters most is real-world impact — evidence that our reporting influenced citizens to hold power to account and pushed policymakers to do better.
And in 2024, our stories were raised in parliaments across the country and cited by citizens in their petitions and letters to politicians.
In Alberta, our reporting revealed Premier Danielle Smith made false statements about the controversial renewables pause. In Manitoba, we proved that officials failed to formally inspect a leaky pipeline for years. And our investigations on a leaked recording of TC Energy executives were called “the most important Canadian political story of the year.”
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