Saskatchewan mining industry seeing unprecedented growth

Saskatchewan's mining industry is experiencing unprecedented growth, with the province's mining association forecasting investment of $43 billion by the year 2028. Potash producers alone are planning to invest $12 billion to expand existing mines by 2020, according to Saskatchewan's Crown Investment Corp. minister, speaking at a news conference to launch Mining Week in Saskatchewan.

Investment in new potash mines being proposed by companies like BHP Billiton, K & S Potash Canada, and Western Potash could double the $12 billion amount already planned for the existing mines.

As the minister said, these numbers "are hard to comprehend," but reflect the importance of mining to the province's economy. It is the third largest industry, supplying more than 30,000 jobs and $6.8 billion in mineral sales last year. 

Exploration is where the mining cycle begins and last year, the industry spent $319 million exploring for minerals, primarily potash, coal and uranium, but also gold, base metals and diamonds. A further $280 million is expected to be invested in exploration this year.

Demand for potash is outstripping supply even as new projects get underway. Current demand is about 50 million tonnes. With an estimated annual growth of 3 per cent, all the projects now on the books are not enough to meet increases up to 2020.

Saskatchewan is the largest potash producer in the world and the second largest uranium producer. It also produces gold, coal, salt, sodium sulphate, potassium sulphate, silica sand and bentonite.