NexGen Energy has started major construction at its Rook I uranium project in Saskatchewan, moving one of Canada’s largest proposed uranium mines into the development stage.
The project entered major construction in June 2026 after receiving key Canadian regulatory approvals. Final federal approval has now been secured, removing a major permitting hurdle and shifting the focus towards construction, financing and delivery.
Rook I is a large-scale uranium project in the south-western Athabasca Basin. NexGen expects the mine to be capable of producing up to 30 million pounds of uranium a year. At that level, it could account for about 20% of global primary uranium supply and more than half of Western supply.
That scale gives the project strategic importance. New uranium mines can take years to permit and build, while nuclear power demand is increasing the need for reliable long-term supply. Rook I is now further advanced than many development-stage projects because the main regulatory process has been completed and physical construction is under way.
The development programme is valued at about $1.6 billion, making capital management and construction discipline central to the company’s progress. NexGen must now manage funding requirements, construction schedules and operational preparation before Rook I can move into production.
The company’s liquidity position and uranium contracting strategy provide some support during this stage. NexGen has maintained exposure to uranium market pricing rather than fully locking in future production at fixed prices. This preserves potential upside if uranium prices strengthen, while also leaving greater exposure to market conditions.
The Athabasca Basin is Canada’s main uranium-producing region and hosts some of the world’s most significant uranium deposits. Developing Rook I within an established mining jurisdiction reduces some of the uncertainty associated with building a large project in a less developed region.
Geiger Counter Limited (LON:GCL) is a Jersey closed-end investment company, which invests in uranium exploration and production stocks.
