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NexGen begins $1.6B Rook I uranium project in Saskatchewan
The underground mine and mill are expected to take about four years to build and target production of about 30 million pounds of uranium annually.
NexGen Energy has started construction of its Rook I uranium project in Saskatchewan, committing about C$2.2 billion, or roughly $1.6 billion, to build what it says could become one of the world’s largest new sources of uranium. Mining.com reports the underground mine and mill are expected to take about four years to build, with eventual output targeted at about 30 million pounds of uranium per year.
The project’s scale is designed to position NexGen among major uranium suppliers if it reaches its planned production rate. Mining.com notes Cameco’s McArthur River-Key Lake operations are licensed to produce 25 million pounds annually, with 2026 guidance of 14 million to 16.5 million pounds.
Construction progress is already underway at Rook I, including major earthworks and surface infrastructure. Mining.com says NexGen commissioned an initial 3,000-foot airstrip and completed expanded site accommodations, and it expects to finish a full 5,840-foot airstrip by year-end, while shaft development is planned for 2027.
Rook I’s path to construction included regulatory approvals in Canada. Mining.com reports that the Canadian Nuclear Safety Commission approved the project’s environmental assessment in March and granted a licence to construct, clearing the final regulatory hurdle. A 2021 feasibility study outlined an 11-year mine life producing 233.6 million pounds of yellowcake and estimated an after-tax net present value of C$3.5 billion at an 8% discount rate, a 52.4% internal rate of return, and a 0.9-year payback period.