Home to over 25 different mine operations, Saskatchewan is producing massive quantities of mineral exports. Pam Schwann, executive director of the Saskatchewan Mining Association, was recently interviewed about Saskatchewan's place in the world mineral market.
Q: What advantage does mining have in Saskatchewan that other places do not?
A: Saskatchewan has a number of advantages that make it a great place to mine.
The natural advantages include the diverse geological framework in Saskatchewan that hosts world class deposits of resources such as potash and uranium as well as one of the world's largest diamond-bearing kimberlite deposits. Without the deposit, there is no opportunity for mine development. Other advantages include a very responsive government that values the investment and prosperity that mining is bringing to Saskatchewan that is accompanied by very strong public support for mining.
There is a skilled workforce with a good work ethic, with solid post-secondary institutions such as the University of Saskatchewan, University of Regina, SIAST and partners at the Regional Colleges and SIIT to train the next generation of employees. We also have a very strong and expanding local mining supply industry.
Q: Why is Saskatchewan a good place to invest - in terms of mining?
A: Saskatchewan is a good place to invest in mining because of the world-class deposits located here, and because the operational risk is low. The government has a stable policy and regulatory framework so that businesses can make decisions and have certainty of outcomes, and there is public support for the industry.
Q: What kind of minerals is Saskatchewan primarily known for?
A: Saskatchewan is fortunate to have a diverse portfolio in terms of mineral production, but there is no question that potash and uranium have put Saskatchewan in the international spotlight. Other minerals we mine include coal, which is the primary source of baseload power in the province, gold, salt, silica sand, and clay, with potential for much more including diamonds and rare earth minerals.
Q: Which countries rely heavily on Saskatchewan mining exports?
A: Saskatchewan is a trading province, and mineral exports represent a significant percentage of our exports. Key markets for potash exports include China, United States, Brazil, and India for enhanced crop production in corn, wheat, rice, (37 per cent) fruits and vegetables (22 per cent) and oilseeds (16 per cent). Key markets for uranium include utilities in United States and Canada, France and other European customers and Asia.
Coal mined in Saskatchewan is used internally to provide the majority of the province's baseload power. For all minerals, Saskatchewan Trade and Export Partnership have identified that the U.S. was the largest destination (58 per cent) for Saskatchewan mining exports totalling $3.4 billion in exports in 2010. Other major markets for Saskatchewan mining exports included: United Kingdom (9 per cent), China (7 per cent), Indonesia (6 per cent), Brazil (6 per cent), India (6 per cent) and Malaysia (3 per cent).
Q: How has Saskatchewan mining been growing over the years?
A: Over the past two decades, the Saskatchewan mining industry has been relatively stable in terms of the number of companies actively producing in the province; however there has been a significant increase in the value of mineral sales from the province, and this has attracted the attention of other competing global companies into the Saskatchewan marketplace. For the last two decades, the stable of potash mining companies (and their direct predecessors) has been PotashCorp, Mosaic and Agrium. PotashCorp and Mosaic represent 2 of the top 3 global producers of potash, and Agrium is in the top 10. The face of uranium mining in Saskatchewan has also been constant over the past two decades with Cameco and AREVA (and their direct predecessors) being the two dominant uranium producers in Saskatchewan, as well as the top 2 uranium producing companies in the world. The world class deposits of both potash and uranium combined with increasing commodity prices driven by an increasing global population and expanding middle class along with the need to address climate change and the low risk political environment have all combined to produce a "positive perfect storm" for Saskatchewan in terms of mineral development. A good indication of growth of the Saskatchewan mineral sector is the value of mineral sales from the province, which was stagnant around $1.5 - 2 Billion for over a decade. This started to change around 2004, and in 2008, Saskatchewan was the #1 producing mineral jurisdiction in Canada, with mineral sales valued at $9.7B. For the past 2 years, we have been the #2 producing mineral jurisdication in Canada, after Ontario, however with the expansions in the potash, uranium and gold sectors, we are set to reclaim the status as the #1 mineral producing jurisdiction in Canada.
Q: What kind of growth do you foresee in Saskatchewan's future?
A: Mining companies in Saskatchewan will be investing over $50 Billion in their operations in the next 20 years, so we see continued, constant growth of the mining industry in Saskatchewan's future. Existing potash producers will have invested over $12 B from 2008 - 2013 in expanding their existing operations, and much of the province's resilience in the face of the global economic recession a few years ago can be attributed to this continued investment. The uranium industry continues to ramp up to significantly increasing its production by 2018, with Cigar Lake, the world's second richest uranium mine, forecast to come into production in 2013.
Q: What is the outlook for Saskatchewan mining? For the individual resources that Saskatchewan is Mining?
A: The outlook for Saskatchewan mining is very positive. With a current global population of 6.9B set to reach 9 Billion people by 2045, the needs of this demographic are staggering. More food and energy will need to be produced from a decreasing land base. The growing world's middle class needs and wants what Saskatchewan produces, or has the potential to produce. In the next 25 years, the world's energy consumption will increase by 75 per cent and as many minerals will be consumed worldwide as in all of history to date.
Potash and uranium will continue to be the crown jewels of Saskatchewan mineral production, with coal mining steadily continuing to fuel the province's internal power needs. We will see a significant milestone reached later this year, when Claude Resources' Seabee mine achieves the 1,000,000 oz production mark; the first time a primary gold mine in Saskatchewan has made that achievement. Saskatchewan also has potential to develop other mineral resources, including diamonds, platinum, rare earth and base metal deposits.
Q: What areas are best known for Mining in Saskatchewan? And for which resources?
A: Saskatchewan's mines are located throughout rural and northern Saskatchewan, from the surface coal mines along the SK - US border north to the uranium mines in the Athabasca Region of Saskatchewan, with potash mines stretching across the central heart of the province. Combined with the corporate office presence in Saskatoon and Regina, and with mine employees located in dozens of communities, mining is well known throughout Saskatchewan.
Q: What kind of Mining resources are there in Saskatchewan? How many mines?
A: There are over 25 different mine operations located throughout the province including 10 potash mines, 2 uranium mines, with a 3rd to come into production in 2013, 3 coal mines, 2 gold mines, 1 silica sand operation as well as some small salt, sodium sulphate and clay mines.
Q: What companies are involved in Mining in Saskatchewan?
A: The world's largest potash and uranium producers, PotashCorp, Mosaic, Cameco and AREVA, have corporate offices in Saskatchewan that support their mine operations. Saskatoon is also home to a number of junior gold mining companies Claude Resources and Golden Band Resources, along with more than a dozen exploration companies. Sherritt is the sole coal miner in the province. The last couple of years has seen the arrival of some new players to Saskatchewan, with the arrival of K + S Potash, which already has a potash mine in Germany, as well as global mining giants BHP Billiton, Vale, and RioTinto, the three largest mining companies in the world. All are looking to bring a new potash or uranium deposit into production
Read more: Mining in Saskatchewan
Q: What advantage does mining have in Saskatchewan that other places do not?
A: Saskatchewan has a number of advantages that make it a great place to mine.
The natural advantages include the diverse geological framework in Saskatchewan that hosts world class deposits of resources such as potash and uranium as well as one of the world's largest diamond-bearing kimberlite deposits. Without the deposit, there is no opportunity for mine development. Other advantages include a very responsive government that values the investment and prosperity that mining is bringing to Saskatchewan that is accompanied by very strong public support for mining.
There is a skilled workforce with a good work ethic, with solid post-secondary institutions such as the University of Saskatchewan, University of Regina, SIAST and partners at the Regional Colleges and SIIT to train the next generation of employees. We also have a very strong and expanding local mining supply industry.
Q: Why is Saskatchewan a good place to invest - in terms of mining?
A: Saskatchewan is a good place to invest in mining because of the world-class deposits located here, and because the operational risk is low. The government has a stable policy and regulatory framework so that businesses can make decisions and have certainty of outcomes, and there is public support for the industry.
Q: What kind of minerals is Saskatchewan primarily known for?
A: Saskatchewan is fortunate to have a diverse portfolio in terms of mineral production, but there is no question that potash and uranium have put Saskatchewan in the international spotlight. Other minerals we mine include coal, which is the primary source of baseload power in the province, gold, salt, silica sand, and clay, with potential for much more including diamonds and rare earth minerals.
Q: Which countries rely heavily on Saskatchewan mining exports?
A: Saskatchewan is a trading province, and mineral exports represent a significant percentage of our exports. Key markets for potash exports include China, United States, Brazil, and India for enhanced crop production in corn, wheat, rice, (37 per cent) fruits and vegetables (22 per cent) and oilseeds (16 per cent). Key markets for uranium include utilities in United States and Canada, France and other European customers and Asia.
Coal mined in Saskatchewan is used internally to provide the majority of the province's baseload power. For all minerals, Saskatchewan Trade and Export Partnership have identified that the U.S. was the largest destination (58 per cent) for Saskatchewan mining exports totalling $3.4 billion in exports in 2010. Other major markets for Saskatchewan mining exports included: United Kingdom (9 per cent), China (7 per cent), Indonesia (6 per cent), Brazil (6 per cent), India (6 per cent) and Malaysia (3 per cent).
Q: How has Saskatchewan mining been growing over the years?
A: Over the past two decades, the Saskatchewan mining industry has been relatively stable in terms of the number of companies actively producing in the province; however there has been a significant increase in the value of mineral sales from the province, and this has attracted the attention of other competing global companies into the Saskatchewan marketplace. For the last two decades, the stable of potash mining companies (and their direct predecessors) has been PotashCorp, Mosaic and Agrium. PotashCorp and Mosaic represent 2 of the top 3 global producers of potash, and Agrium is in the top 10. The face of uranium mining in Saskatchewan has also been constant over the past two decades with Cameco and AREVA (and their direct predecessors) being the two dominant uranium producers in Saskatchewan, as well as the top 2 uranium producing companies in the world. The world class deposits of both potash and uranium combined with increasing commodity prices driven by an increasing global population and expanding middle class along with the need to address climate change and the low risk political environment have all combined to produce a "positive perfect storm" for Saskatchewan in terms of mineral development. A good indication of growth of the Saskatchewan mineral sector is the value of mineral sales from the province, which was stagnant around $1.5 - 2 Billion for over a decade. This started to change around 2004, and in 2008, Saskatchewan was the #1 producing mineral jurisdiction in Canada, with mineral sales valued at $9.7B. For the past 2 years, we have been the #2 producing mineral jurisdication in Canada, after Ontario, however with the expansions in the potash, uranium and gold sectors, we are set to reclaim the status as the #1 mineral producing jurisdiction in Canada.
Q: What kind of growth do you foresee in Saskatchewan's future?
A: Mining companies in Saskatchewan will be investing over $50 Billion in their operations in the next 20 years, so we see continued, constant growth of the mining industry in Saskatchewan's future. Existing potash producers will have invested over $12 B from 2008 - 2013 in expanding their existing operations, and much of the province's resilience in the face of the global economic recession a few years ago can be attributed to this continued investment. The uranium industry continues to ramp up to significantly increasing its production by 2018, with Cigar Lake, the world's second richest uranium mine, forecast to come into production in 2013.
Q: What is the outlook for Saskatchewan mining? For the individual resources that Saskatchewan is Mining?
A: The outlook for Saskatchewan mining is very positive. With a current global population of 6.9B set to reach 9 Billion people by 2045, the needs of this demographic are staggering. More food and energy will need to be produced from a decreasing land base. The growing world's middle class needs and wants what Saskatchewan produces, or has the potential to produce. In the next 25 years, the world's energy consumption will increase by 75 per cent and as many minerals will be consumed worldwide as in all of history to date.
Potash and uranium will continue to be the crown jewels of Saskatchewan mineral production, with coal mining steadily continuing to fuel the province's internal power needs. We will see a significant milestone reached later this year, when Claude Resources' Seabee mine achieves the 1,000,000 oz production mark; the first time a primary gold mine in Saskatchewan has made that achievement. Saskatchewan also has potential to develop other mineral resources, including diamonds, platinum, rare earth and base metal deposits.
Q: What areas are best known for Mining in Saskatchewan? And for which resources?
A: Saskatchewan's mines are located throughout rural and northern Saskatchewan, from the surface coal mines along the SK - US border north to the uranium mines in the Athabasca Region of Saskatchewan, with potash mines stretching across the central heart of the province. Combined with the corporate office presence in Saskatoon and Regina, and with mine employees located in dozens of communities, mining is well known throughout Saskatchewan.
Q: What kind of Mining resources are there in Saskatchewan? How many mines?
A: There are over 25 different mine operations located throughout the province including 10 potash mines, 2 uranium mines, with a 3rd to come into production in 2013, 3 coal mines, 2 gold mines, 1 silica sand operation as well as some small salt, sodium sulphate and clay mines.
Q: What companies are involved in Mining in Saskatchewan?
A: The world's largest potash and uranium producers, PotashCorp, Mosaic, Cameco and AREVA, have corporate offices in Saskatchewan that support their mine operations. Saskatoon is also home to a number of junior gold mining companies Claude Resources and Golden Band Resources, along with more than a dozen exploration companies. Sherritt is the sole coal miner in the province. The last couple of years has seen the arrival of some new players to Saskatchewan, with the arrival of K + S Potash, which already has a potash mine in Germany, as well as global mining giants BHP Billiton, Vale, and RioTinto, the three largest mining companies in the world. All are looking to bring a new potash or uranium deposit into production
Read more: Mining in Saskatchewan
