With the world looking to feed its growing population, the potash market looks to be on a long-term growth trajectory. As companies the world over place big bets on the pink mineral, Saskatchewan, already the world’s top potash-producing locale, is looking to cement its status as the global leader in potash.
Home to world-class potash resources, the province’s efforts to attract more investors appear to be paying off.
As the industry’s preferred provider for custom potash processing equipment, process development services, and service support, FEECO continues to serve as a key resource to this thriving market. Here’s a look at some of the recent developments happening in and around Saskatchewan’s potash industry.
Potash Development Encouraged
In late 2020, the Government of Saskatchewan made changes to The Potash Production Tax Regulations in an effort to encourage more research and development in the region.
Qualified R&D projects can receive tax credits of up to 40% under the regulations. Expiration dates have been removed and eligibility requirements broadened, allowing more companies, and particularly juniors, to take advantage of the benefits and also use them for a longer period of time, according to Global News.
Energy and Resources Minister, Bronwyn Eyre, said in a statement released by the government, “These changes will promote the expansion of Saskatchewan’s potash sector and ensure that our province remains the preferred jurisdiction in which to pilot innovative technologies.”
Potash on Critical Minerals List
Not surprisingly, Natural Resources Canada included potash in their list of critical minerals. The list identifies materials that are vital to the nation’s economic security, the transition to a low-carbon economy, and those that will allow Canada to be a valued resource to allies. The list represents the markets in which Canada intends to position itself as a global leader.
Jansen Project Approved
The long-awaited approval on BHP’s Jansen project has finally come to fruition. The project marks the single largest economic investment in the province’s history and is a milestone for the mining major; the Jansen project will be BHP’s first foray into potash after a long history in oil and gas.
BHP will join the ranks of other major potash producers invested in the region, including Mosaic, Nutrien, and K+S.
In a statement about the project, Premier Scott Moe said, “As the largest economic investment in our province’s history, BHP’s decision highlights the strength of our potash resource and will undoubtedly help build a strong economy for Saskatchewan.”
The Jansen project has an estimated mine life of 100 years, a total investment of $12 billion, and will lock in hundreds of jobs.
Saskatchewan Sets Sights on $9 Billion in Potash Sales
In their Growth Plan for 2020-2030, Saskatchewan announced their intention to grow the industry’s potash sales to nine billion dollars by the year 2030. The government lays out several strategies to grow not only the potash sector, but the province’s mining industry in general.
Action items to achieve their goals include ensuring a competitive royalty and tax environment for miners, lowering barriers to global markets and foreign investment, encouraging additional exploration, and more.
Earlier this year, The Fraser Institute, which looks at both mineral endowments and policy climate, ranked the province as its third most attractive mining jurisdiction based on their annual survey. The rank was eight spots higher than the year prior.
The province is also well positioned to fill in supply gaps amid sanctions from western economies on Belarus, with Saskatchewan-based Nutrien already announcing an increase in output for the year.
Conclusion
Between concerted efforts and a little luck, Saskatchewan’s potash industry looks to be cementing its place as the world’s top potash producer, with efforts to attract investors and encourage development already underway.
FEECO has been and continues to remain a preferred provider to the potash industry, ready to serve with custom potash processing equipment, process feasibility and development services, and extensive parts and service offerings. For more information on how we can help your potash project, contact us today!