Saskatchewan leader wants isotope reactor- paper

* Wants to build research reactor within three years

* Final decision could come as soon as August

TORONTO, June 20 (Reuters) - The leader of the Canadian province of Saskatchewan is seeking to build a nuclear reactor and transform his province into a producer of medical isotopes and atomic research hub, the Globe and Mail reported on Saturday.

Medical isotopes have become political issue in Canada after the country's Chalk River reactor in Ontario, which normally produces about one-third of world supply, was shut down in May for at least three months because it was leaking a small amount of heavy water.

Saskatchewan Premier Brad Wall told the Globe and Mail newspaper that he wants to build a research reactor within two to three years, likely at the University of Saskatchewan in Saskatoon.

He said the shutdown of Atomic Energy of Canada's Chalk River reactor creates an intersection of Canada's need and Saskatchewan's nuclear ambitions.

"Maybe the west can provide a solution," he said in the interview.

Wall ran on a platform that included a pledge to build up a full-fledged nuclear industry in Saskatchewan, which is one of the world's largest uranium suppliers, but does little beyond extract the ore. Leading producer Cameco Corp (CCO.TO) is based in the province.

The province would be a good place to build Western Canada's first nuclear reactor, according to a report released in April by a government advisory panel. [ID:nN03355778]