REGINA - Saskatchewan wants to build a nuclear reactor which could replace an aging facility in Ontario that supplies medical isotopes to the world, but it would come with a multimillion-dollar price tag.

The province, working with the University of Saskatchewan, has pitched a plan to the federal government to develop a 20-megawatt, low-enriched uranium research reactor in Saskatoon. The proposed facility, dubbed the Canadian Neutron Source, would replace a reactor in Chalk River that provides about one-third of the world's supply of isotopes but has been plagued with technical troubles.

The 52-year-old reactor was shut down in mid-May after a radioactive water leak was found. That has left hospitals scrambling to find alternatives to isotopes used to detect cancer and heart ailments.

Saskatchewan Energy and Resources Minister Bill Boyd says a new facility in Saskatoon, which would cost between $500 million and $750 million to build, could be the answer.

"The isotope problem is now, yes of course, but stretching out further there's going to be an increased concern in that area as well," Boyd said Tuesday. "We think it's a good proposal. We think it brings together a number of great opportunities here in Saskatchewan."

The province is the world's largest producer of uranium, but mining the raw material is as far as the province has gone in the nuclear cycle. A uranium development report released in April said Saskatchewan could enhance its position in the nuclear industry by building a research reactor. Integrating medical isotope production would make the reactor more economically viable, the report indicated. The proposal sent to Ottawa suggests that the Canadian Neutron Source could be completed and ready for isotope production as early as 2016. It notes, however, that the completion date would depend on many factors, including an environmental review and funding. The proposal calls on Ottawa to pick up 75 per cent of the construction tab and says Saskatchewan would pay for the rest. Ottawa, it suggests, should cover 60 per cent of the annual operating cost - an estimated $45 million to $75 million.

"I think in any proposal of this type the cost has a fairly wide range, absolutely," said Boyd. "We would want to work with the federal government on further decisions with respect to that."

When asked what the odds are of the project going ahead without federal funding Boyd said: "Probably not very good." But he added the fact that the federal government is asking for proposals probably indicates it has an interest.

Federal Natural Resources Minister Lisa Raitt's office said the expert panel has received 21 statements of interests for the long-term production of medical isotopes, and Saskatchewan's is included.

Boyd says he expects an expert panel appointed by Ottawa to look at new supply options to make a decision on any proposals by late fall.

Saskatchewan Premier Brad Wall has said the public consultation process on uranium development should be completed before the project could go forward. That's expected to happen by the end of this month.

Saskatchewan's Opposition New Democrats say there are a lot of unanswered questions.

"This project has a potentially interesting development for science and technology within Saskatchewan, but the question is at what cost to Saskatchewan taxpayers," said New Democrat Trent Wotherspoon.

"The federal government's been clear from the start ... that (it hasn't) committed a single dollar to this project," he said, adding that the Saskatchewan government is presumptuous to think that Ottawa would take on the lion's share.