Saskatchewan Mining: On a Roll

The world economy may have suffered in the past five years but the mining industry in Saskatchewan did not skip a beat. In fact, Potash Corporation of Saskatchewan (PotashCorp), operator of half the province’s ten mines, surpassed its 2007 capacity production of 9.1 million tonnes. It registered 9.3 million tonnes in 2011 for potash production - and continues to expand.

PotashCorp is surging ahead, allocating $7.7 billion for its expansion projects. It intends to spend $6 billion to improve its Saskatchewan operations in Allan, Cory, Lanigan, Patience Lake, and Rocanville. These projects are slated to be finished in 2014 at the earliest and are expected to create 36,000 person years of employment for Saskatchewan. It is also expected to double the company’s operating capacity for potash.

Other potash producers in the region—The Mosaic Company, Agrium Inc., K+S Group, BHP Billiton Ltd., Vale S.A., Rio Tinto PLC, JSC Acron, Western Potash Corp., Karnalyte Resources Inc., and Encanto Potash Corp.—are also expanding their various operations. 　Bill Johnson, PotashCorp’s Senior Director of Public Affairs, is optimistic: "About half of the world’s potash reserves are in Saskatchewan, so the future looks very good. The growth markets for us are China, India, Brazil and South East Asia, where both the population base is increasing significantly, and also the wealth. When that happens, one of the areas you see growth in is food production."

But potash, used mainly in fertilizers, is not the only mineral keeping Saskatchewan’s economy upbeat. Diamond, uranium, and coal are also big contributors. More than $50 billion is expected to be infused in the diamond fields located in the eastern part of Prince Albert in the next twenty years. Uranium production in McArthur River/Key Lake, Mc-Clean Lake and Rabbit Lake continues to be a major industry, contributing $1.09 billion to the province’s economy. Saskatchewan is Canada’s third largest producer of coal with its three mines in Boundary Dam, Bienfait and Poplar River all operated by Sherritt International Corp.

The exploration cost for these minerals is not cheap. Estimates from Natural Resources Canada show that the expenditures reach close to $300 million. But when compared to the economic benefits— $3 billion spent on wages, goods and services and $2 billion in revenues through royalties and taxes—it’s easy to understand why the mining industry in Saskatchewan is on a roll.