We are in the midst of a transformative moment in global energy. Governments urgently are seeking to decarbonize the international economy while geopolitical tensions threaten the availability of a reliable, affordable and safe energy supply.
The need for comprehensive solutions that ensure energy abundance and independence is more critical than ever, fueling international interest in nuclear energy as a leading solution. Spearheading this effort is the G7 and the diplomatic commitment of the coalition’s five nuclear powers to establish the Civil Nuclear Fuel Cooperation. While attempting to reduce reliance on Russian energy and diversify the net-zero energy supply, this initiative also creates a significant opportunity for Canada to emerge as the nuclear leader on the world stage.
As one of the world’s most resource-rich uranium exporters, Canada is uniquely positioned ecologically and politically by decades of progressive nuclear policy to become the global epicenter of the nuclear renaissance. Domestically,, Canada is making significant strides for the collective nuclear sector, pioneering as an early adopter of small modular reactor (SMR) technology and research. Building upon its leadership, Canada has continued to invest in the development of SMRs that advance nuclear technology and clean energy innovation, highlighted by the recent announcement of a $2.5 million investment in SMR research at the University of Alberta and the University of Regina.
Such investments clearly demonstrate policy makers’ long-term perspective on nuclear as tool for advancing the future of Canada’s sustainable energy and domestic prosperity. A report by the Conference Board of Canada highlights the economic benefits of nuclear power to the nation, noting that the construction of the four-unit Candu Monark Nuclear power plant is anticipated to boost Canada's GDP by over C$90 billion while creating thousands of jobs. The potential upside of nuclear energy is driving a similarly bullish attitude among Canadian corporations, whose investments in nuclear energy are further advancing the domestic energy transition. Canadian engineering firm AtkinsRéalis predicts a “super cycle” in the nuclear industry over the next three years, doubling its nuclear business as the world turns to nuclear power for net-zero emissions and energy security.
Similar displays of nuclear leadership can be observed on the provincial level. Ontario's new Energy and Electrification Minister, Stephen Lecce, announced the completion of phase one in constructing the first of four GE-Hitachi 300MW BWRX-300 SMRs, marking a significant milestone in the province's energy strategy. In Saskatchewan, where NexGen’s transformative Rook I Project is located, Premier Scott Moe has expressed his dedication to opening the province to global markets, while pledging commitment to building the province’s first SMR in Estevan. Given Saskatchewan’s distinction as a top global mining jurisdiction, this development will help advance nuclear power technology and production worldwide, providing the global civilian population with a stable uranium supply.
However, it’s crucial to recognize that with the current fragility of mine supply and the growing supply deficit, the world will need many more Rook I Project’s to meet the global demand for uranium. The World Nuclear Association is forecasting uranium for a cumulative supply deficit of approximately 1.5 billion pounds by 2040. Without significant investments in uranium production, the strain on the supply chain will only intensify as just three countries produce uranium while global interest is mounting around nuclear energy’s potential to achieve our collective net zero goals. Moreover, a staggering 75% of the uranium that powers many G7 nuclear reactor fleets originates from state-owned or quasi-controlled companies, creating an even greater need for uranium discovery and development from nations within the Western alliance.
To help close the gap, NexGen is continuing its proactive efforts to bring its Rook I Project into production this decade. Based in Saskatchewan and recently awarded its Provincial Environmental Assessment approval, Rook I is the largest high-grade uranium deposit under development. Once online, the Project will have the capacity to produce nearly 30 million pounds of uranium annually, delivering up to 23% of the world’s total primary uranium supply and roughly 50% of total western supply. To contextualize the significance of the Rook I Project on the global energy supply, Saudi Arabia produces 12% of the world’s oil.
With production at this scale, NexGen will have a unique opportunity to leverage our uranium for the betterment of the world by supplying it exclusively to nations that share our goals of achieving net zero targets and energy sovereignty. As we enter the energy market and throughout our company’s growth, NexGen is committed to implementing rigorous standards for all partners involved in our supply chain to ensure the highest environmental, security, safety, and labor practices are upheld at every stage of our operations.
However, an effort of this magnitude is more significant than any one company, requiring a broad coalition of stakeholders to advance our vision. Regulators, legislators, businesses, and communities must be willing to lead and support policies that reflect our democratic values and national security interests. Canada will be a leader in uranium production — but our industry must first take steps to minimize the financial and geopolitical risks for our customers, investors, and the households we power while supporting elected officials ready to position Canada for leadership in the clean energy frontier.
Alt/ As we move forward, NexGen recognizes that the successful development of the Rook I Project and the broader advancement of nuclear energy require collaborative efforts across various sectors. We are committed to working closely with regulators, industry partners, local communities, and other stakeholders to ensure responsible and sustainable uranium production. Our focus remains on delivering value to our shareholders while contributing significantly to global energy security and environmental sustainability. By maintaining our commitment to excellence in all aspects of mine development and operation, we aim to set new industry standards and play a pivotal role in shaping the future of clean energy.
