Saskatchewan a leader
For decades, potash has been a linchpin of the Saskatchewan economy. From the earliest mining efforts in the 1950s and ‘60s, up to the high volume trading that takes place today, a significant part of the history of mining in Saskatchewan is tied to potash production. Among the many groups working to make sure potash continues to be a part of the province’s future is the Saskatchewan Mining Association (SMA), which is concerned with representing and supporting a safe, responsible and growing Saskatchewan mining industry, and encouraging research and training within Saskatchewan. These mandates prove to be a demanding job, as Saskatchewan’s potash industry continues to grow.
Much of this development can be attributed to the wealth of potash that exists within the province. The prairie evaporate unit, which hosts the potash deposits, stretches from an area west of Saskatoon, east to Rocanville, and southward to Moose Jaw. As a result, recent estimates indicate that, at the current rate of production, Saskatchewan’s reserves will last for hundreds of years and will continue to provide a stable foundation for expansion.
Within Canada itself, Saskatchewan stands as the leading producer of potash, with over 85 per cent of the nation’s total coming from the province’s 10 operational mines. From these mines, approximately 14 million tonnes (Mt) of KCl was produced in 2012, with future expansions looking to add another five to 10 Mt of production by 2020. Overall, PotashCorp operates four conventional underground mines (Cory, Lanigan, Rocanville, and Allan) and one solution mine (Patience Lake), Mosaic oversees three conventional underground mines (Colonsay, Esterhazy K1 and K2) and one solution mine (Belle Plaine), and Agrium runs a single conventional underground mine (Vanscoy)
Due to this wide base of producers, the province has been able to dominate the national market and take advantage of favourable commodity prices, with potash being the top-ranked commodity by production value for the past three years. For example, in 2012 alone, potash sales from Canada were valued at nearly $7 billion, with Saskatchewan production valued at $6.2 billion. Additionally, the importance of potash to the province — and Canada as a whole — will continue, even with the breakup of the Russian-Belarusian group. “Our producers are responsible and have been looking 40 to 50 years ahead when making their investment decsions,” said SMA executive director Pamela Schwann, “which means that the long-term value of potash will continue.”
A large portion of this confidence comes from the significant role that Saskatchewan potash plays in global market, with over 30 per cent of the world’s production coming from the province. This position allows Saskatchewan to profit from growing demands for potash, which are driven by the need to increase agricultural productivity around the globe. Resulting projections indicate a three per cent growth per year. While this will ensure continued profitability, the reliability of the potash industry also continues to attract investment within the province by producers themselves.
Driven by the potential of the potash market, all three of the producers within the province have recently expanded, or are in the process of expanding, their existing brownfield operations with over $12 billion in investment. These expansions have the potential to add an additional 12 Mt KCl product into the global market. New, greenfield potash projects are also underway and have received environmental approvals, with K + S Potash Canada developing the Legacy solution mine near Bethune, the province’s first greenfield mine in over 40 years. Also, BHP Billiton has announced further investments of $2.6 billion in its 8 Mt Jansen mine project, and Western Potash Corporation is moving forward on its Milestone solution mine project. Once again, while news from Europe may cause some deferrals or delays on select projects, Schwann remains confident as “these companies have been looking at long running timeframes from the very start.”
One of the reasons for this confidence is the national and global reputation that Saskatchewan potash companies have for being reliable, responsible, and disciplined in their operations. These values are reflected not only economically, but also in the effort made to build strong relationships with customers, and the surrounding communities. Each year, the potash industry provides millions of dollars in support of local and provincial educational activities and charities, and this support has helped forge strong bonds between producers and the Saskatchewan people. This support of the Saskatchewan people, and their recognition of the importance of mining to the province, is one of the greatest strengths of the potash industry.
To build further awareness of the mining industry in Saskatchewan and create future opportunities, the SMA is developing education resources that are linked to provincial curriculum content. These resources include Saskatchewan-specific lesson plans and activities that focus on using local examples to teach curriculum content and heighten awareness of the career opportunities that exist within the province. “Students are much more interested in a subject when they can see how what they are learning is relevant to them. For example, we use potash to explain the concept of mixtures and solutions, which is in the Grade 7 curriculum,” said Schwann. While the education outreach program, which includes workshops, is still a work in progress, Schwann said, “this is part of a commitment to grow and make available resources that highlight the dynamic nature of the mining sector our province and the opportunities available here. The future continues to be bright for Saskatchewan, and we want upcoming generations to know that!”