Denison Mines Gets Green Light for First New Canadian Uranium Mine in a Generation
Construction is set to begin this month on the Phoenix uranium mine in northern Saskatchewan, marking the first new large-scale uranium mine to be built in Canada in over two decades. Denison Mines Corp. Received the final go-ahead from its board of directors on February 24th, following a construction license granted by the Canadian Nuclear Safety Commission (CNSC) earlier in February.
The project, located within Treaty 10 territory in the Athabasca Basin, is expected to cost approximately $600 million, according to the company. Denison anticipates initial production by mid-2028, with a planned operational lifespan of ten years. The Phoenix mine will utilize in-situ recovery (ISR) technology, a method where acidic solutions are pumped into the ore body to dissolve uranium for extraction.
“There are very few new mines of large scale that are in the pipeline for uranium globally,” said David Cates, President and CEO of Denison Mines, in a statement. “We are likely the only meaningful source of new uranium supply that enters the market before the 2030s, so that situates Denison uniquely amongst our peers.”
The project has secured impact benefit agreements with English River First Nation, the Métis Nation—Saskatchewan, and Ya’thi Néné Lands and Resources, representing several First Nations and communities in the Athabasca Basin. While details of these agreements remain confidential, they typically include provisions for employment, training, contracts for local businesses, and financial benefits.
Garrett Schmidt, executive director of Ya’thi Néné Lands and Resources, stated that the organization endorsed the Phoenix project after Denison addressed environmental and other potential impacts. “We are satisfied with the mitigation measures that are being implemented, but we’re similarly very interested in how development continues to occur in the basin,” Schmidt said. “So we’re very mindful of and observing planned projects and how they’re being proposed just to create sure that the balance is always maintained. Having clean water, intact ecosystems and land is very important to the communities to support their culture and their way of life.”
However, not all communities have expressed support. Submissions to the CNSC hearings from groups like the Birch Narrows Dene Nation and Peter Ballantyne Cree Nation did not endorse the project. Peter Ballantyne Cree Nation previously initiated legal action against the province and Denison Mines regarding the environmental assessment and consultation process.
Denison Mines maintains an “open dialogue” with both Peter Ballantyne Cree Nation and Birch Narrows Dene Nation, according to Cates. “That’s a function in progress and the reality is that Indigenous engagement is not something that stops when a permit is granted,” Cates said. “It really starts with approval of projects and has to continue through life of mine. So we will be looking for opportunities to enhance our programs and enhance our engagement.”
The Phoenix mine is one of two uranium projects currently seeking approval in Saskatchewan. Vancouver-based NexGen Energy Ltd. Is awaiting a construction license decision from the CNSC for its Rook I project, an underground uranium mine also located in the Athabasca Basin. The last uranium mine approved in Saskatchewan was Cameco Corp.’s Cigar Lake mine, which began construction in 2005.