Key facts
- NexGen Energy has begun construction on its Rook I uranium project in Saskatchewan.
- The company aims to raise $1 billion in capital within nine months.
- NexGen Energy is in ongoing discussions with mining giant BHP.
- BHP has previously assessed NexGen and owns land adjacent to the Rook project.
- The Rook I project is anticipated to become one of the world's largest uranium producers.
Canadian uranium miner NexGen Energy has initiated construction on its Rook I project in Saskatchewan, a development that is expected to yield one of the world's largest uranium mines. The company is seeking to raise $1 billion in capital over the next nine months through various financing options, including potential equity partnerships.
NexGen CEO Leigh Curyer confirmed that the company is in regular dialogue with mining giant BHP, which has previously shown interest in NexGen and owns land near the Rook project. Curyer indicated that BHP is looking to increase its weighting in politically stable countries and that discussions involve technical information sharing. BHP's incoming CEO, Brandon Craig, also plans to examine the uranium sector.
The increased demand for nuclear power, driven by the need for data center energy and diversification of energy sources, is boosting the uranium market. BHP currently produces approximately 5% of global uranium supply as a byproduct of its copper operations. Other miners, including Denison and Paladin, are also advancing projects in Canada's Athabasca region, where BHP is also constructing the world's largest potash mine.
NexGen's market capitalization has doubled in the past year, leading some investors to view the company as potentially expensive for BHP. Canaccord forecasts that uranium demand could triple by 2035. The Rook I mine is projected to commence production by 2030.