SASKATOON — The forests and lakes of northern Saskatchewan are once again drawing the attention of governments, energy companies and investors as countries search for stable sources of power in an increasingly volatile global energy market.
A surge of uranium supply deals, mine developments and reactor plans has put the province’s Athabasca Basin back in the spotlight as nations look for reliable nuclear fuel to steady the world’s energy system.
Canada is the world’s second-largest uranium producer after Kazakhstan, according to the World Nuclear Association, and virtually all of that production comes from northern Saskatchewan. The region is home to some of the richest uranium deposits ever discovered, with ore grades far higher than the global average, according to Natural Resources Canada and the Saskatchewan Geological Survey.
Those unusually high concentrations of uranium allow producers to extract more fuel from less rock, lowering costs and making the deposits particularly attractive at a time when nuclear power is gaining renewed interest worldwide.
That renewed attention became clear this month when Cameco Corp., the Saskatoon-based uranium giant, announced a $2.6-billion agreement to supply roughly 22 million pounds of uranium concentrate (commonly known as yellowcake) to India between 2027 and 2035.
The contract was unveiled during Prime Minister Mark Carney’s visit to New Delhi and will see uranium supplied to India’s Department of Atomic Energy to fuel the country’s expanding nuclear reactor fleet.
India currently operates more than two dozen reactors and plans a major expansion of nuclear power as it seeks stable electricity sources for its growing economy. The International Atomic Energy Agency says nuclear energy is expected to play an increasing role in global electricity generation as countries try to reduce carbon emissions while maintaining reliable power.
The Canada-India deal reflects a broader shift in global energy strategy as countries attempt to diversify fuel supplies and reduce exposure to volatile oil and natural gas markets.
Pakistan has criticized the agreement, warning that imported uranium for India’s civilian reactors could allow New Delhi to redirect domestic uranium toward military uses. Canadian and Indian officials have framed the partnership as part of a civil nuclear energy relationship focused on energy security.
Beyond export markets, interest in nuclear power is also growing within Canada.
Ontario has begun building what is expected to be the first grid-scale small modular reactor in the G7 at the Darlington nuclear site east of Toronto, according to Ontario Power Generation. The reactor is expected to begin operating later this decade and could become a model for other jurisdictions exploring the technology.
Alberta and Saskatchewan are also studying the use of small modular reactors, or SMRs, as potential sources of power for heavy industry, mining operations and remote communities. The provinces have joined Ontario and New Brunswick in an interprovincial agreement aimed at developing and deploying the new reactor technology.
Supporters say SMRs could provide steady electricity while producing fewer greenhouse gas emissions than fossil fuels, making them attractive for provinces with energy-intensive industries.
If SMRs and other nuclear projects expand, Saskatchewan’s uranium reserves could become even more strategically important.
The Athabasca Basin already hosts some of the world’s highest-grade uranium deposits, with concentrations far greater than most other mining districts, according to Natural Resources Canada. That geological advantage has made the region a cornerstone of the global nuclear fuel supply for decades.
Readers can see the accompanying infographic explaining the unique geology that makes northern Saskatchewan’s uranium deposits among the most valuable in the world.
Cameco remains the dominant player in the province’s uranium sector. The company operates the Cigar Lake mine and the McArthur River and Key Lake operations, which together represent a major share of global uranium production, according to company disclosures and federal resource data.
After years of depressed prices following the 2011 Fukushima nuclear disaster, uranium markets are tightening again as utilities secure long-term contracts to fuel reactors expected to operate for decades.
Industry groups including the World Nuclear Association and the International Energy Agency say demand for uranium is rising as countries extend the life of existing reactors and build new ones.
That outlook is beginning to trigger a new wave of mine development in northern Saskatchewan.
Denison Mines has received approval from the Canadian Nuclear Safety Commission to construct the Phoenix mine at its Wheeler River project, which could begin producing uranium around 2028. NexGen Energy is also awaiting regulatory approval for its proposed Rook I uranium project, another major development planned for the Athabasca Basin.
Alongside those large projects, smaller exploration companies are stepping up efforts to find new uranium deposits across the region. Junior mining firms are conducting drilling programs and geophysical surveys in the basin, hoping to identify the next major discovery.
After more than a decade of limited investment in uranium mining, analysts say the sector may be entering a new growth phase driven by rising demand for nuclear power.
If those projections prove correct, the remote mining camps of northern Saskatchewan may once again become a focal point in the global search for stable energy.
For countries navigating an increasingly uncertain energy landscape, the solution to the world’s power swings may lie beneath the ancient rock formations of the Athabasca Basin.
