Saskatchewan has become much more than a land of rolling wheat fields and emerald forests. No longer relying solely on its economic backbone of agriculture, the province has even become more than the land of milk and honey - increasingly, it is the land of ore and money. Minerals make up a large percentage of our exports, pumping dollars into our economy while helping fuel and feed the world.
While other riches lie beneath our productive soil, among the chief money makers are potash and uranium. Both are products the world needs - one helps fuel the food production that fills the stomachs of the world's growing population; the other fuels their ever increasing energy needs.
Saskatchewan is the largest producer of potash in the world, and it's one of our province's main exports. A mixture of potassium salts with potassium carbonate, potash is most commonly found as potassium chloride (KCl). It's the "K" in the fertilizer blends that we buy for our gardens and is essential for the overall health of plant cells.
Potash production in our province increased by 13.9 per cent in 2011 over 2010, to 10.4 million tonnes, according to Saskatchewan Statistics. The Ministry of Energy and Mines states that the current capacity of the Saskatchewan potash industry is almost 21 million tonnes, or between 25 and 30 per cent of the world's total production. About five per cent of our potash is used here in Canada; almost half goes to the U.S., with the rest going to Latin American and Asian markets.
Our reserves of potash have been attracting ever-increasing attention and investment, and potash companies have announced almost $13 billion worth of expansions to their existing mines by 2020.
With 20 per cent of global potash capacity, PotashCorp is the world's largest potash company. In 2003, it began a $7.7 billion expansion program to increase operational capability at all its mines, increasing operational capability to 17.1 million tonnes by 2015. "Potash is a global commodity. There are now seven billion people worldwide and they all need to eat. That number will increase to nine billion people, and commercial fertilizer is needed to increase productivity to feed them," said Bill Johnson, senior director, Public Affairs.
PotashCorp's projects are big by nature. At Cory, the mill will have the capability to process nearly three million tonnes of potash a year, making it one of the largest mills of its kind in the world. And its Allan operation boasts the tallest steel headframe in the world, at 93 metres (305 feet). Continuing to build big, PotashCorp's new 500,000 tonne storage facility that is under construction at Rocanville will be one of the world's largest buildings, with the capacity to hold approximately 30 days of production, or enough potash to fill almost 4,900 potash rail cars. The $2.8 billion expansion to Rocanville began in 2007; when complete in 2014, it is expected to allow the site to produce up to 5.7 million tonnes of potash a year. "Our biggest project right now is Rocanville," Johnson said. "We're sinking a new shaft a few miles away from the mill that will be our new service shaft for people and materials. So the second shaft at the current mine will be converted to a production shaft," he said.
Mosaic Potash is also planning work on its Saskatchewan facilities. Mike Crawford manager, Stage 1 and Compaction Expansion for Mosaic Potash, outlined the company's expansion plans for the Saskatchewan Mining Association Supply Chain Forum in Saskatoon. Mosaic's potash production capabilities are the third largest in the world, with an annual capacity of 10.4 million tonnes. Its principal potash operations are located in Canada and United States, with four mines in Saskatchewan, at Colonsay, Belle Plaine and Esterhazy.
Mosaic's $5.5 billion first stage of work at Belle Plaine is scheduled for completion this year and includes expansion of the existing refinery, increased storage and minefield development. A full feasibility study is underway for phase two, which is expected to be completed in 2017. The $1.8 billion investment will see the construction of a new refinery, increased product storage, increased loadout capacity and minefield development.
Work on the first phase of the company's Esterhazy expansion is also expected to be complete this year, Crawford told the forum. The less than $1 billion stage one project includes expanded mine and mill capacity, upgraded hoisting capability, and additional product storage. Stage two is expected to be complete in 2017 at a cost of $1.5 billion. The K3 site development includes two shafts, mine development and surface facilities that will make it into a satellite mine for K2.
The company is also plans upgrades to its Colonsay operations, including an expansion to its mill operations to process additional ore brought to surface, as well as hoist upgrades and additional mining equipment to deliver the increased ore supply. Scheduled for completion in 2013, phase one of the Colonsay project is expected to cost just under one billion dollars.
Calgary-based Agrium is currently investing $1.5 billion for a one-million-tonne expansion at its Vanscoy operation to raise capacity by 50 per cent. Construction is underway and is expected to be complete within two years, peaking at over 2,000 people working on the project. Agrium Inc. is a major retail supplier of agricultural products and services in North America, South America and Australia. It is a leading global wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through its advanced technologies business unit.
Saskatchewan is "key to our business," said Tom Diment, vice-president of Agrium's Potash and Phosphate Operations. Currently Vanscoy accounts for three per cent of world potash capacity, making Agrium the 10th largest potash producer.
The Vanscoy expansion is "very exciting," Diment said. "We've been in the potash industry in Saskatchewan for 42 years and we've done numerous smaller expansions over the years, but this is the biggest expansion we've ever done." The investment in Saskatchewan reflects the company's confidence in the global potash market. With the world population now at seven billion and growing, Diment said all those people will need to be fed. "One of the great things about the business were in is that we're helping feed the world," he said.
Diment believes the hunger for increased production will continue to fuel the market for potash well into the future. "People are going to have to eat, and to feed them we're going to have to get better yields and to get better yields, we're going to need responsible fertilization," he said.
And, all those people are also going to need fuel to fire their furnaces and factories. Saskatchewan is also one of the world's leading uranium producers. The Ministry of Industry and Resources states that our province accounts for 20 per cent of global production. A Ministry fact sheet says that our uranium deposits are the richest in the world and are the equivalent of 19 billion barrels of oil or four billion tonnes of coal.
The major player in the uranium industry in Saskatchewan, Cameco, is one of the world's largest uranium producers, accounting for about 16 per cent of world production from its mines in Canada, the U.S. and Kazakhstan. John Murillo of the Major Projects Division told the Saskatchewan Mining Association Supply Chain Forum in Saskatoon that the company's goal is to double production by 2018.
To accomplish that, Cameco plans extensive upgrades to its Rabbit Lake, McArthur River, Key Lake and Cigar Lake operations over the next five years. To achieve what Cameco calls its "Double U by 2018" Murillo said the company will sustain existing production at 20 million pounds annually and construct new production assets to deliver 20 million pounds a year, with the primary growth through Saskatchewan operations.
Cameco wholly owns its Rabbit Lake facility and partners with AREVA Resources in its McArthur River and Key Lake operations. Ore from McArthur River is trucked to Key Lake where it is then fed into the Key Lake mill and processed into yellowcake (uranium concentrate).
AREVA is a large producer itself, with total combined Saskatchewan production of six million pounds of U3O8 in 2011 from its minority share operations at McArthur River.
In 2002, after more than 20 years of profitable operation, the Cluff Lake mine and mill produced its last pound of uranium concentrate. Working under the regulatory oversight of the Canadian Nuclear Safety Commission and the Saskatchewan Ministry of the Environment, AREVA is moving steadily closer to meeting the decommissioning commitments. Its final legacy will ultimately be to return the land to the Province for traditional uses.
In October 2011, AREVA and its McClean Lake partners entered into an agreement with Cigar Lake's joint venture partners to process the ore from the Cigar Lake mine at the McClean Lake mill. Cigar Lake, with the second-largest high-grade uranium deposit in the world (McArthur River is the first) is anticipated to begin production in 2013 and eventually increase production to 18 million pounds of uranium per year.
AREVA has planned a $150 million upgrade to increase the mill's production to 24 million pounds of uranium a year. Up to 75 per cent of this capacity will be dedicated to processing Cigar Lake ore, with the remaining capacity reserved for processing other sources of ore. AREVA Resources expects the first phase of construction to begin this summer.
In 2011, McClean Lake continued its care and maintenance status with a key focus on preparing to restart the mill. AREVA is proposing to haul ore from McArthur River to the McClean Lake mill. Processing this ore will help get the mill commissioned prior to receiving ore from Cigar Lake.
AREVA vice-president of Communications, Jarret Adams, said AREVA is "bullish" about the future of the uranium market, following a slight decline as a result of last year's damage to the Fukushima nuclear facility in Japan. "Fukushima is behind us. We see a very strong future. The market outlook is good for this year and getting better next year," he said. "There are some factors out there that are going to lead to some amazing growth. The Chinese have 26 new nuclear facilities under construction and there are 60 new nuclear power plants being built around the world. So we believe the future is extremely bright here in Saskatchewan and across Canada."
Whether providing the fertilizer the world's people need to grow their food or the uranium they need to fuel many of their power plants, what lies beneath Saskatchewan's soil is proving to be as valuable as what lies above.
While other riches lie beneath our productive soil, among the chief money makers are potash and uranium. Both are products the world needs - one helps fuel the food production that fills the stomachs of the world's growing population; the other fuels their ever increasing energy needs.
Saskatchewan is the largest producer of potash in the world, and it's one of our province's main exports. A mixture of potassium salts with potassium carbonate, potash is most commonly found as potassium chloride (KCl). It's the "K" in the fertilizer blends that we buy for our gardens and is essential for the overall health of plant cells.
Potash production in our province increased by 13.9 per cent in 2011 over 2010, to 10.4 million tonnes, according to Saskatchewan Statistics. The Ministry of Energy and Mines states that the current capacity of the Saskatchewan potash industry is almost 21 million tonnes, or between 25 and 30 per cent of the world's total production. About five per cent of our potash is used here in Canada; almost half goes to the U.S., with the rest going to Latin American and Asian markets.
Our reserves of potash have been attracting ever-increasing attention and investment, and potash companies have announced almost $13 billion worth of expansions to their existing mines by 2020.
With 20 per cent of global potash capacity, PotashCorp is the world's largest potash company. In 2003, it began a $7.7 billion expansion program to increase operational capability at all its mines, increasing operational capability to 17.1 million tonnes by 2015. "Potash is a global commodity. There are now seven billion people worldwide and they all need to eat. That number will increase to nine billion people, and commercial fertilizer is needed to increase productivity to feed them," said Bill Johnson, senior director, Public Affairs.
PotashCorp's projects are big by nature. At Cory, the mill will have the capability to process nearly three million tonnes of potash a year, making it one of the largest mills of its kind in the world. And its Allan operation boasts the tallest steel headframe in the world, at 93 metres (305 feet). Continuing to build big, PotashCorp's new 500,000 tonne storage facility that is under construction at Rocanville will be one of the world's largest buildings, with the capacity to hold approximately 30 days of production, or enough potash to fill almost 4,900 potash rail cars. The $2.8 billion expansion to Rocanville began in 2007; when complete in 2014, it is expected to allow the site to produce up to 5.7 million tonnes of potash a year. "Our biggest project right now is Rocanville," Johnson said. "We're sinking a new shaft a few miles away from the mill that will be our new service shaft for people and materials. So the second shaft at the current mine will be converted to a production shaft," he said.
Mosaic Potash is also planning work on its Saskatchewan facilities. Mike Crawford manager, Stage 1 and Compaction Expansion for Mosaic Potash, outlined the company's expansion plans for the Saskatchewan Mining Association Supply Chain Forum in Saskatoon. Mosaic's potash production capabilities are the third largest in the world, with an annual capacity of 10.4 million tonnes. Its principal potash operations are located in Canada and United States, with four mines in Saskatchewan, at Colonsay, Belle Plaine and Esterhazy.
Mosaic's $5.5 billion first stage of work at Belle Plaine is scheduled for completion this year and includes expansion of the existing refinery, increased storage and minefield development. A full feasibility study is underway for phase two, which is expected to be completed in 2017. The $1.8 billion investment will see the construction of a new refinery, increased product storage, increased loadout capacity and minefield development.
Work on the first phase of the company's Esterhazy expansion is also expected to be complete this year, Crawford told the forum. The less than $1 billion stage one project includes expanded mine and mill capacity, upgraded hoisting capability, and additional product storage. Stage two is expected to be complete in 2017 at a cost of $1.5 billion. The K3 site development includes two shafts, mine development and surface facilities that will make it into a satellite mine for K2.
The company is also plans upgrades to its Colonsay operations, including an expansion to its mill operations to process additional ore brought to surface, as well as hoist upgrades and additional mining equipment to deliver the increased ore supply. Scheduled for completion in 2013, phase one of the Colonsay project is expected to cost just under one billion dollars.
Calgary-based Agrium is currently investing $1.5 billion for a one-million-tonne expansion at its Vanscoy operation to raise capacity by 50 per cent. Construction is underway and is expected to be complete within two years, peaking at over 2,000 people working on the project. Agrium Inc. is a major retail supplier of agricultural products and services in North America, South America and Australia. It is a leading global wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through its advanced technologies business unit.
Saskatchewan is "key to our business," said Tom Diment, vice-president of Agrium's Potash and Phosphate Operations. Currently Vanscoy accounts for three per cent of world potash capacity, making Agrium the 10th largest potash producer.
The Vanscoy expansion is "very exciting," Diment said. "We've been in the potash industry in Saskatchewan for 42 years and we've done numerous smaller expansions over the years, but this is the biggest expansion we've ever done." The investment in Saskatchewan reflects the company's confidence in the global potash market. With the world population now at seven billion and growing, Diment said all those people will need to be fed. "One of the great things about the business were in is that we're helping feed the world," he said.
Diment believes the hunger for increased production will continue to fuel the market for potash well into the future. "People are going to have to eat, and to feed them we're going to have to get better yields and to get better yields, we're going to need responsible fertilization," he said.
And, all those people are also going to need fuel to fire their furnaces and factories. Saskatchewan is also one of the world's leading uranium producers. The Ministry of Industry and Resources states that our province accounts for 20 per cent of global production. A Ministry fact sheet says that our uranium deposits are the richest in the world and are the equivalent of 19 billion barrels of oil or four billion tonnes of coal.
The major player in the uranium industry in Saskatchewan, Cameco, is one of the world's largest uranium producers, accounting for about 16 per cent of world production from its mines in Canada, the U.S. and Kazakhstan. John Murillo of the Major Projects Division told the Saskatchewan Mining Association Supply Chain Forum in Saskatoon that the company's goal is to double production by 2018.
To accomplish that, Cameco plans extensive upgrades to its Rabbit Lake, McArthur River, Key Lake and Cigar Lake operations over the next five years. To achieve what Cameco calls its "Double U by 2018" Murillo said the company will sustain existing production at 20 million pounds annually and construct new production assets to deliver 20 million pounds a year, with the primary growth through Saskatchewan operations.
Cameco wholly owns its Rabbit Lake facility and partners with AREVA Resources in its McArthur River and Key Lake operations. Ore from McArthur River is trucked to Key Lake where it is then fed into the Key Lake mill and processed into yellowcake (uranium concentrate).
AREVA is a large producer itself, with total combined Saskatchewan production of six million pounds of U3O8 in 2011 from its minority share operations at McArthur River.
In 2002, after more than 20 years of profitable operation, the Cluff Lake mine and mill produced its last pound of uranium concentrate. Working under the regulatory oversight of the Canadian Nuclear Safety Commission and the Saskatchewan Ministry of the Environment, AREVA is moving steadily closer to meeting the decommissioning commitments. Its final legacy will ultimately be to return the land to the Province for traditional uses.
In October 2011, AREVA and its McClean Lake partners entered into an agreement with Cigar Lake's joint venture partners to process the ore from the Cigar Lake mine at the McClean Lake mill. Cigar Lake, with the second-largest high-grade uranium deposit in the world (McArthur River is the first) is anticipated to begin production in 2013 and eventually increase production to 18 million pounds of uranium per year.
AREVA has planned a $150 million upgrade to increase the mill's production to 24 million pounds of uranium a year. Up to 75 per cent of this capacity will be dedicated to processing Cigar Lake ore, with the remaining capacity reserved for processing other sources of ore. AREVA Resources expects the first phase of construction to begin this summer.
In 2011, McClean Lake continued its care and maintenance status with a key focus on preparing to restart the mill. AREVA is proposing to haul ore from McArthur River to the McClean Lake mill. Processing this ore will help get the mill commissioned prior to receiving ore from Cigar Lake.
AREVA vice-president of Communications, Jarret Adams, said AREVA is "bullish" about the future of the uranium market, following a slight decline as a result of last year's damage to the Fukushima nuclear facility in Japan. "Fukushima is behind us. We see a very strong future. The market outlook is good for this year and getting better next year," he said. "There are some factors out there that are going to lead to some amazing growth. The Chinese have 26 new nuclear facilities under construction and there are 60 new nuclear power plants being built around the world. So we believe the future is extremely bright here in Saskatchewan and across Canada."
Whether providing the fertilizer the world's people need to grow their food or the uranium they need to fuel many of their power plants, what lies beneath Saskatchewan's soil is proving to be as valuable as what lies above.