NexGen Energy (NYSE:NXE) has officially kicked off construction at the Rook I Project, the largest development-stage uranium project in Canada.
Located in the Southwestern Athabasca Basin, the mine is expected to supply around 20% of global primary uranium supply and over 50% of Western supply, delivering up to 30 million pounds annually, with strong expansion potential.
Major construction commenced in June 2026, following approvals by the Canadian Nuclear Safety Commission (CNSC) in March 2026.
Canada’s nuclear industry plays a critical role in global supply. As the second-largest uranium producer globally, Canada currently accounts for around 24% of production, with all active mining coming from Saskatchewan’s Athabasca Basin. At last reporting in 2024, 90% of Canada’s uranium production was being exported for international use.
In its World Nuclear Outlook Report, the World Nuclear Association estimates that global nuclear capacity could expand significantly by 2050 if new builds are able to meet government targets for nuclear growth.
“When all operable, under construction, planned, proposed, and potential reactors are combined with government targets, the total global capacity could reach 1,446 gigawatt-electric (GWe) by 2050, surpassing the approximately 1,200 GWe target established under the ‘Declaration to Triple Nuclear Energy’, which was launched at the COP28 meeting in Dubai in 2023,” the report states.
“This indicates strong international support for nuclear energy as a core component of climate and energy security strategies.”
The report also states that growing nuclear capacity will require a corresponding increase in uranium supply to meet demand.
In 2025, around 70,000 tonnes of uranium (tU) were required to fuel the current nuclear fleet. The World Nuclear Association’s 2025 World Nuclear Fuel Report notes an upper scenario of close to 200,000 tU per annum required to support a 2040 capacity projection of 966GWe. For the 1,200 GWe capacity, annual uranium requirements are at 250,000 tU.
In 2025, primary uranium production stood at around 60,000 tU, meaning a fourfold increase in annual uranium production is needed in order to meet nuclear growth plans.
Developers and explorers push to close the supply gap
As the supply gap widens and uranium demand grows, the opportunities for regional producers, developers, and explorers are set to grow as well.
Denison Mines (TSX:DML) is also ramping up on-site activity at the Phoenix in situ recovery mine, following the commencement of full-scale construction in March 2026 and completing site preparation in late July.
Phoenix is part of the Wheeler River Project, the largest undeveloped uranium project in the eastern part of the Athabasca Basin region, with the project’s other deposit at Gryphon.
Skyharbour Resources (TSX-V:SYH) is advancing one of the largest uranium portfolios in the Athabasca Basin, having recently staked 46 new mineral claims, bringing the company’s portfolio to 682,100 hectares across 44 uranium properties.
The company has strong industry partnerships, including with Denison Mines, Orano, Terra Clean Energy (CSE:TCEC), Purecore Metals (CSE:PURE), among others, as it advances a dual-track strategy of focused exploration alongside a robust prospect-generator platform.
Skyharbour’s projects span early grassroots exploration through to advanced-stage exploration. The company has planned over 30,000m of drilling in 2026 across six of its projects, with a significant amount of that work already underway.
Terra Clean Energy’s South Falcon East Project is part of a farm-in agreement with Skyharbour Resources and sits around 50km east of Cameco’s (TSX:CCO) former Key Lake Uranium open-pit mine and current operating conventional uranium mill.
Key Lake mine produced around 200 million pounds of triuranium octoxide (U3O8) when it was in operation.
South Falcon East’s current resource is around 7 million pounds of shallow, at-surface, pegmatite-hosted U3O8, with mineralisation remaining open in all directions.
Terra Clean Energy is fully permitted for an early 2027 drill program, with the company planning to commence around February or March 2027. The drill program is expected to expand the existing 7 million pounds of outlined U3O8.
In addition to South Falcon East, Terra Clean Energy is also focused on the Marysvale Uranium Project in Utah and the Powder Mountain Project in Wyoming, US.
Purecore Metals is also tied in with Skyharbour Resources, having entered into a definitive agreement on 29 July 2026 to acquire an option to earn up to a 100% interest in the Yurchison Uranium Project.
The Yurchison property spans 22 claims over around 35,029 hectares of mineral rights in the Athabasca Basin. Based on historical drilling in the 1960s and 1980s and additional fieldwork from the mid-1990s and early 2000s, Purecore believes that the site has strong discovery potential not only for uranium, but copper, zinc, and molybdenum as well.
With NexGen’s Rook I now under construction and a wave of Athabasca Basin projects advancing in parallel, Canada’s uranium sector is entering a decisive growth phase.
As global nuclear capacity targets accelerate, the basin’s developers and explorers are positioning to bridge the looming supply gap.
The scale of activity underscores Saskatchewan’s strategic role in the Western uranium supply chain, with the next decade set to define Canada’s contribution to a rapidly growing nuclear future.
Write to Amy Rotman at Mining.com.au
Images: NexGen Energy, Skyharbour Resources
