Uranium is experiencing a resurgence due to the growing focus on nuclear energy as a solution to the climate crisis. With its abundant, high-grade uranium deposits, Canada has the potential to become a dominant player in the global nuclear energy market. However, the question remains whether the country can fully realize this potential.
Leigh Curyer, an Australian-born businessman with nearly two decades of experience in uranium mining, observed a significant shift in the industry. In 2011, the Fukushima nuclear disaster in Japan severely impacted the global perception of nuclear power, causing uranium prices to plummet. However, in the last five years, uranium prices have surged by over 200%, making it one of the top-performing commodities of the year.
Curyer attributes this turnaround to a change in public and political attitudes toward nuclear energy. This shift began in 2018, when Microsoft founder Bill Gates praised nuclear energy as an “ideal solution” to climate change. In 2022, former UK Prime Minister Boris Johnson pushed for a policy that would generate at least 25% of the country’s energy from nuclear sources. Soon after, the European Union declared nuclear energy to be climate-friendly, further bolstering the industry’s prospects.
These events served as catalysts for the uranium sector, signaling a pivotal moment for Curyer’s company, NexGen Energy, which is currently developing Canada’s largest uranium mine. As a result, the company has seen a significant influx of investor interest, a trend Curyer had never experienced in his previous 17 years in the industry. NexGen’s project in Canada’s uranium-rich Athabasca Basin in northern Saskatchewan has garnered a valuation of nearly $4 billion, despite the mine’s anticipated start of commercial operations not being until at least 2028.
If NexGen’s project clears regulatory hurdles, it could propel Canada to become the world’s leading producer of uranium within the next decade, surpassing Kazakhstan. Other companies are also flocking to Saskatchewan to capitalize on the uranium boom, launching new exploration projects and reopening dormant mines.
Given the expected rise in global uranium demand, Canada’s rich uranium resources have made its mining sector crucial to the future of nuclear energy. At the COP28 climate conference, nearly two dozen countries committed to tripling their nuclear energy output by 2050, further driving the demand for uranium. Due to its lower carbon emissions compared to fossil fuels like coal and natural gas, nuclear energy is considered a key player in the fight against climate change. Currently, nuclear energy accounts for about 10% of global electricity production, while gas and coal still contribute over 50%.
Uranium is found worldwide, but Canada’s Athabasca region stands out due to its exceptionally high-grade deposits. Markus Piro, a professor of nuclear engineering at McMaster University, notes that Canada’s uranium is particularly valuable because of its purity and quality. Furthermore, Canada enforces strict regulations on the sale of its uranium, guaranteeing its exclusive use for nuclear power generation.
Due to its comprehensive capabilities in uranium production, Canada is also considered a “tier-one nuclear nation”. From mining to manufacturing, Canada handles the entire process, unlike many other countries that rely on importing enriched uranium. Following extraction, overseas facilities mill the uranium into yellowcake, ready for further enrichment to produce nuclear reactor fuel.
