SASKATCHEWAN’S POTASH FUTURE REMAINS BRIGHT
Around the world, there continues to be a high demand for potash. Back at home in Saskatchewan, the province has the ability to meet this demand – and then some.
The valuable mineral can be used as a crop nutrient to strengthen plant stalks and roots, enhance water retention and helps crops fight disease and injury; to add flavour, colour and texture to food; and as part of the process used to make industrials goods. Saskatchewan is the largest potash producer in the world, typically accounting for approximately 30 per cent of world production.
“The potash reserves in Saskatchewan are massive,” said Cory Hughes, executive director of mineral policy for the Ministry of the Economy. “By conservative estimates, Saskatchewan could supply world demand at current levels for several hundred years.”
Potash production in Saskatchewan has been continuous since 1962, when Mosaic completed its K-1 mine at Esterhazy. In 2015, Saskatchewan produced 18.2 million tonnes with a sales value of $6.1 billion.
As the saying goes, “You have to spend money to make money,” and the industry’s willingness to invest its time and resources into projects has led to continued growth.
Since 2005, industry has committed over $20 billion for the development of expansions and new potash mines in Saskatchewan. According to the Fraser Institute’s 2015 Survey of Mining Companies, which evaluates 109 jurisdictions, Saskatchewan’s mining investment attractiveness ranks first in Canada and second worldwide.
“We have been very successful over the years at attracting investment,” Hughes said. “This has allowed us to increase our capacity and develop more projects. The mining expansions, many of which have been completed, are expected to increase the province’s potash production capacity by about 70 per cent.”
There are many potash projects in the province at various stages of development.
PotashCorp has nearly completed the expansions at its Rocanville mine, located 250 kilometres east of Regina near the Manitoba border. The mine has been undergoing an approximately $3 billion expansion since 2008. The company said this expansion will double its production capacity (increasing from 2.7 million tonnes annually to 5.7 million tonnes) and make it one of the biggest underground mines – potash or otherwise – in the world.
K+S Potash Canada continues with its Legacy Project potash mine and production facility adjacent to Belle Plaine. It’s the first new Greenfield potash mine built in Saskatchewan in 45 years. While the solution mine’s first commercial production has been delayed until the second quarter of 2017 (from the end of 2016 as originally scheduled), K+S is still expecting to reach its target production capacity of two million tonnes at the end of 2017.
Further down the line, BHP Billiton is hoping to bring its Jansen mine into production during the decade following 2020. Located approximately 140 kilometres east of Saskatoon, Jansen is expected to be one of the world’s largest potash mines, with a projected annual capacity of about eight million tonnes — roughly 15 per cent of total global supply.
“All of our mines have gone through at least one expansion in the past decade and there are several other projects at different stages of evaluation, including several through the environmental assessment process,” Hughes said. “The market will determine what moves forward in the future here.”
Hughes said that one thing sure to continue moving forward is innovation in the potash industry.
“Innovation really was the big reason for the development of the industry,” Hughes explained. “One of the big breakthroughs for the industry was the creation of the Blairmore Ring, which allowed potash shafts to be successfully sunk through the challenging Blairmore Formation.
“Our industry is continuing to be innovative in finding ways to mine what previously couldn’t be mined. Some companies are exploring horizontal solution mining, a method for recovering a target material from an at-depth soluble target layer. Others are looking into retreat mining, which involves excavating the edges of the ore body and then working backward systematically, avoiding the cost of maintaining mined-out areas.”
World-class research and development work is being led by the Universities of Saskatchewan and Regina, the Saskatchewan Research Council (SRC), the International Minerals Innovation Institute and the Canadian Light Source Synchrotron, said Hughes. The SRC is also home to the Geoanalytical Laboratories, one of the world’s
largest exploration sample processing labs, with expertise in potash, uranium and diamonds.
The potash industry in Saskatchewan employs over 5,100 people, while contributing to the livelihood of thousands more. It also maintains high standards for environment, sustainable development and safety. Saskatchewan has a strategic central location with excellent transportation services to North American and offshore markets.
All in all, Hughes said there are a lot of reasons to be optimistic about the potash industry moving forward.
“It’s obviously a tough time for market conditions, but the industry remains optimistic,” he said. “The long range fundamentals for potash are still strong. With growing world income levels and population, there are more demands for higher protein foods. We anticipate potash demand will continue to grow.
“Through it all, Saskatchewan will maintain its position as the leading producer of potash.”