Development timeline
1943: Geological surveys and exploratory drilling reveals that Saskatchewan has one of the largest potash deposits in the world
1951: First commercial production potash mine is attempted by Western Potash Corporation Limited in the Unity district Numerous delays and flooding make the project unsuccessful.
1958: Potash is first produced by Potash Company of America (PCA) near Saskatoon. The mine floods the next year and does not return to production until 1965
1960: 1970: Potash production in Saskatchewan has been continuous since 1962: Ten mines are built in Saskatchewan for less than $300 million by six different companiesK Referenced by: company name, location (year of initial production). Potash Company of America, Saskatoon (1958); International Minerals and Chemical Corporation (IMC), Yarbo K-1 (1962); Kalium Chemicals Limited, Belle Plaine (1964); IMC, Gerald K-2 (1967); Allan Potash Mines, Allan (1968); Duval Corporation of Canada, Saskatoon (1968); Alwinsal Potash of Canada Limited, Guernsey (1968); Central Canada Potash, Colonsay (1969); Cominco Ltd., Vanscoy (1969); Hudson Bay Mining and Smelting Co. Limited, Rocanville (1970).
1962: IMC’s K-1 mine makes the first sale of potash to
JapanK
Early 1970s: 2700 people are employed by the Saskatchewan’s potash industry.
1970: Canpotex is formed to market Saskatchewan potash outside of the UKS and Canada to foreign markets
1970: Ross Thatcher’s Liberal government introduces a prorationing system to stabilize potash production and prices in Saskatchewan during a period of reduced industry profitability.
1974: Allan Blakeney’s NDP government introduces a “reserve taxI” similar to a property taxI that imposes a tax rate on potash reserves held by each corporation Previous royalty taxes were set between one and four per cent of sales
1975: Potash Corporation of Saskatchewan (PCS), a crown corporation, is created with the objective of increasing revenues I encouraging expansion and ensuring a degree of public ownership. PCS purchases the Allan, Duval, Alwinsal and Hudson Bay mines.
1978: The United States Bureau of Mines estimates that Canada has half of the world’s total potash resources — weighing in at 70 billion tonnes — and almost all of it is in Saskatchewan.
1979: The NDP negotiates a new taxation system with the potash industry that reduces taxes and royalties by approximately 25 per cent
1985: Canpotex moves its head office from Toronto to Saskatoon
1987: The Government of Saskatchewan introduces another prorationing system in response to dumping duties being levied on the potash industry in the
1987: A water inflow closes the PCA mine at Patience Lake in February 1987. The mine returns to production as a solution mine in mid-1989 at a significantly reduced level of capacity.
1988: Grant Devine’s Progressive Conservative government privatizes
1989: A new potash resource tax system called the Potash Production Tax is introduced.
2000: Canpotex ships its 100-millionth tonne of Saskatchewan potash to offshore marketsK
2003 and 2005: Lorne Calvert’s NDP government introduces tax incentives to encourage the development of the potash industry. In response to the incentives, the Saskatchewan potash industry introduces an aggressive development program that will eventually expand every potash mine in the province
2004: The Mosaic Company is created by a merger of IMC and Cargill Inc.
2004: Canpotex surpasses annual gross sales revenue of AN billion US for the first time.
2007: The new Saskatchewan Party takes office and Premier Brad Wall announces the province is once again, “open for business.”
2008: BHP buys out Anglo Potash Ltd. for $282 million. 2009: Brazilian mining giant, Vale SA purchases the potash assets of Rio Algom, which includes potash reserves in Saskatchewan.
2009: Saskatchewan Party announces a tax incentive to encourage the creation of potash head office jobs in the province.
2010: BHP purchases Athabasca Potash Inc. (API) for roughly $320 million US. API holds 100 per cent interest in the Burr project outside Saskatoon and 22 other mineral properties.
2010: PCS rejects a hostile takeover bid from BHP of $130 US a share. Potash shares close at $143 US at the time of the bid.
2010: The Government of Canada denies approval for the purchase of PCS by BHP because the deal does not provide a net benefit to Canada.
2010: Vancouver-based Potash One Inc. is taken over by Germany’s K+S Aktiengesellschaft for $434 million. Potash One Inc. has been developing the Legacy Project located north of Moose Jaw.
2011: Rio Tinto and North Atlantic Potash Inc., the Canadian subsidiary of Russia’s JSC Acron, sign a joint venture to explore over nine permitted areas that cover 241,000 hectares around Last Mountain Lake and Broadview area.
2012: Vale postpones its $3 billion mining project in Jansen. The mine is expected to produce 2.9 million metric tonnes of potash per year.
2012: Direct employment by the Saskatchewan potash industry hits 5,100 employees.
2012: K+S Potash Canada breaks ground at The Legacy Project and plans to spend $3.5 billion to build the first new potash mine in Saskatchewan in over 40 years
2013: Currently, only three companies produce potash in Saskatchewan: PCS, Mosaic and Agrium.
August 2013: BHP Billiton commits an additional $2.6 billion US to the Jansen Mine. This takes BHP’s total investment in the project to $3.8 billion US.