URANIUM MINING IN SASKATCHEWAN AND ENERGY POTENTIAL

By: Evan Lucyk

Canada is the world’s second-largest producer of uranium, an element that holds significant potential as a focal energy provider for the future. Much of the uranium produced in Canada originates in Saskatchewan and plays a substantial role in its economy. The majority of Canadian uranium reserves are located in the Athabasca Basin of northern Saskatchewan. It is important to note that these reserves hold the world’s largest high-grade deposits, with grades 10 to 100 times greater than the average grade of deposits mined in other places around the world.

The majority of uranium in the world comes from Kazakhstan, with 40% of the world’s production. Consumers of large quantities of uranium like the United States have been “increasingly relying on supplies from Kazakhstan, where one state-owned company controls uranium production.” However, Canada can tap further into international uranium markets as the second most prolific hub of uranium is the Athabasca basin in Saskatchewan.

In this basin, the large Cigar Lake and McArthur River mines are run by Cameco—one of the world’s top Canadian uranium producers and Orano Canada Inc. Canadian uranium is primarily used to meet the nuclear-fuel requirements of electric utilities in Canada and around the world. Of all uranium produced in Canada, 85% is exported globally. 

Uranium mines and mills are regulated by the Canadian Nuclear Safety Commission (CNSC), which falls under federal jurisdiction. The Canadian Nuclear Safety Commission regulates uranium mines and mills and all stages of the nuclear fuel cycle. The CNSC regulates refining processes, conversion, fuel fabrication, protection of health and safety, security, and environmental protection. This process serves as an exception to typical jurisdictions as provincial regulations usually govern mining.

Cameco is a mining company based out of Saskatoon with mining operations in Saskatchewan. As one of the world’s largest uranium fuel providers, Cameco generates energy in carbon-free nuclear reactors and believes in the need for future clean air electrical generation.

In January 2018, two of Cameco’s operations—Key Lake and McArthur River Operations—were put into Care & Maintenance for an indeterminate period. Other operations have also been put on hold recently: Cigar Lake only restarted in September 2020, after a six-month suspension in response to the COVID-19 pandemic. While there are no plans to reopen yet, Cameco expects the Key Lake and McArthur River operations will be the first of theirs that are currently closed to reopen when the market and pandemic restrictions allow. 

Even though 2020 has been a tough year for the company, Cameco’s president and CEO, Tim Gitzel, expressed optimism for the future in an interview from November 2020:

“In an environment where we think trade policy, like the amendment to the Russian Suspension Agreement in the U.S., will create opportunities for commercial suppliers like Cameco and where utilities have growing uncovered requirements, we are excited about the fundamentals for our industry,” he said.

“We see demand for nuclear growing driven by an increasing focus on electrification and the recognition that to achieve this while still meeting clean-air and climate change goals, nuclear will be needed in the toolbox. And this is occurring precisely while there is growing uncertainty and risk around global uranium supply.”

Uranium’s demand is primarily coming from the energy sector for the production of electricity. Mining uranium has departed from the industry it once was. Canada’s uranium mining industry was historically more heavily involved in weapons production. It now has a lot of potential as an industry to move further toward carbon-free energy production. 

At Bit Service, we are a Saskatchewan based company. With so much uranium so close to home, we are excited to watch the industry thrive as demand for uranium as an energy source increases. Uranium derived energy does create byproducts but does not produce carbon emissions. However, the process of mining the uranium ore does often create carbon dioxide.

It is important to work together if we are going to rewrite our energy future. We believe in the partnership and expansion of Canada’s diverse energy future and are excited to see Saskatchewan’s role grow.