NexGen
NexGen Operations in Canada's Remote Athabasca Basin
Uranium is making a comeback thanks to renewed interest in nuclear energy as a solution to the climate crisis. Canada, rich in high-grade deposits, could become a nuclear “superpower”. But can its potential be exploited?
Leigh Curyer had been in uranium mining for nearly two decades when he noticed a striking change.
In 2011, the disaster at Japan's Fukushima nuclear power plant severely damaged the world's view of nuclear power, and the price of the heavy metal – a key component of nuclear fuel – collapsed.
But the last five years have seen a reversal, with the global price of uranium soaring more than 200%, one of this year's best-performing commodities.
Mr Curyer, an Australian-born businessman, attributes this to a change in attitude that began shortly after Microsoft founder Bill Gates touted nuclear power as “ideal for dealing with change.” climate” in 2018.
Four years later, Boris Johnson, then British Prime Minister, put forward a policy to produce at least 25% of the country's energy from nuclear power.
Shortly after, the European Union declared nuclear power climate-friendly.
These events were a “catalyst” for the uranium industry and a turning point for Mr. Curyer's NexGen company, which is behind the largest uranium mine under development in Canada.
His phone started ringing with calls from investors around the world – something that “had never happened in my previous 17 years in the industry,” he said.
NexGen
Leigh Curyer heads NexGen, whose mine is the largest under development in Canada
NexGen, whose project is located in the remote, uranium-rich Athabasca Basin in northern Saskatchewan, is now worth almost $4 billion (£2.98 billion), despite the fact that the mine will not be commercially operational until at least 2028.
If fully cleared by regulators, the NexGen project could single-handedly push Canada to become the world's largest uranium producer over the next decade, knocking Kazakhstan out of the top spot.
Other companies have also rushed to Saskatchewan to take advantage of the boom, launching their own exploration projects in the region, while existing players have reopened dormant mines.
With its rich resources, Canadian mining companies see the country playing a major role in the future of nuclear energy, meeting a demand for uranium that is poised to increase after nearly two dozen countries committed at the COP28 climate conference to triple their nuclear energy production by 2050. .
Nuclear power is often praised for its low carbon emissions compared to other sources like natural gas or coal.
The World Nuclear Association estimates that 10% of the electricity produced worldwide comes from nuclear sources, while more than 50% is still produced by gas or coal.
At this year's COP29, there was a focus on increasing funding for nuclear projects following a recent UN report indicating that current policies and investments are not enough to slow the rise of global temperature.
Canada's role in supplying this product is made more urgent by Russia's invasion of Ukraine, particularly for the United States, which relied heavily on Russian-supplied enriched uranium to fuel its reactors commercial nuclear power plants.
Mr Curyer believes his mine could prove “absolutely critical” to America's nuclear energy future, as the US now seeks alternatives to Russia, including ramping up exploration on their own soil.
Uranium can be found all over the world, although it has a strong presence in Canada, Australia and Kazakhstan.
But what makes Canada's Athabasca region unique is that its uranium is particularly high quality, said Markus Piro, a nuclear engineering professor at McMaster University.
Canada has set strict rules for selling its uranium to other countries, Professor Piro said, and requires it to be used only for nuclear power production.
The country is also referred to as a “tier one nuclear nation,” he said, due to its ability to produce nuclear fuel from extraction to manufacturing.
Once extracted, the uranium is crushed to produce what is called calcined yellowcake, then enriched, either at facilities in Canada or abroad, to create fuel for nuclear reactors.
“We have a one-stop shop here in Canada, but that is not the case in all countries,” said Professor Piro.
Canada is currently the world's second largest producer of uranium, accounting for approximately 13% of total global production, according to the Canadian government. NexGen expects that once its mine is operational, it will increase this figure to 25%.
Meanwhile, Cameco, which has mined uranium in Saskatchewan since 1988 and powers 30 nuclear reactors around the world, reopened two of its mines in late 2022 to increase production.
CEO Tim Gitzel told the BBC he believed “Canada could become a nuclear superpower in the world.”
But the enthusiasm around nuclear power is not without its critics.
Some environmental groups worry that nuclear projects are too expensive and have deadlines that fail to address the urgency of the climate crisis.
Data from the UK-based World Nuclear Association shows 60 nuclear reactors are under construction in 16 countries, most in China, with another 110 in planning.
Some are expected to go live this year, while others won't until at least the end of the decade.
Meanwhile, more than 100 nuclear power plants have been shut down over the past two decades around the world, including New York State's only nuclear power plant, which was decommissioned in 2021 due to operating costs. high exploitation and environmental and safety problems.
Factories were also closed in Massachusetts, Pennsylvania and Quebec, Canada.
And not all of Canada is on board with the country's uranium industry.
British Columbia has its own uranium reserves, but has not licensed any nuclear power plants or uranium mines to operate in the province since 1980.
Critics have also expressed concern about the radioactive waste that nuclear reactors leave behind for future generations.
Others fear a new disaster on the scale of Fukushima, where a tsunami destroyed three reactors, causing the release of highly radioactive materials and forcing mass evacuations.
“The risk is not zero, that’s for sure,” even if it can be reduced, Professor Piro said.
“Although among the general public there are mixed feelings about it, the reality is that it has produced very safe, very reliable and affordable electricity around the world. »
The industry maintains that the technology is both promising and viable.
Cameco's Gitzel said the industry had learned from past safety mistakes.
“And the public buys in,” he said. “I can tell you that we have great public support for nuclear energy in Canada. »
A 2023 Ipsos poll indicates that 55% of Canadians support nuclear energy.
Getty Images
Uranium City, pictured in this 1975 photo, was once home to 2,500 residents.
Yet Canada's past uranium booms have turned into dramatic busts.
North of NexGen's proposed mine is Uranium City, which was once home to 2,500 residents at its peak in the mid-20th century. In 1982, a major local mining company shut down operations due to high costs and a weak uranium market.
Today, the population of Uranium City is 91 people.
But investors say there is truly growing global demand for the commodity, presenting a golden opportunity for Canada.
NexGen expects construction of its mine – which is awaiting authorization from Canada's federal nuclear regulator – to begin early next year.
Gitzel says about 100 other companies are now actively exploring Saskatchewan for deposits.
It's unclear when exactly it will be on the market.
Mr. Gitzel cautioned that some companies began explorations in the past that never reached the production stage. The time it takes to get mining projects approved in Canada can also be long.
“Building a mine is going to take five to 10 years, and so far the only working mines are ours, so we're going to wait and see how it plays out,” he said.
For Mr. Curyer, it is crucial that his project and others are realized over the next four years, both for Canada and for the world.
“Otherwise there will be a shortage of uranium, which will impact electricity prices,” he said.
