Fertlizing the Future

Date of Article: February 22, 2012

Source: Star Phoenix

Author: Carol Todoruk

If it were a person, it would be on the cover of all the major news magazines. If it could sing, it would light up stages everywhere. It's potash - and it's one of the major forces fuelling Saskatchewan's drive into the future.

Yet, for most of us, the mineral that forms the basis of the fertilizer used around the world - and that comprises a significant portion of the Saskatchewan export market - is something that comes in a bag at the garden centre. 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 it is essential for the overall health of plant cells.

Saskatchewan's underground potash deposits were laid down when the ancient inland sea that used to cover this part of North America evaporated millenniums ago. The deposits, which are separated by layers of salt, are located throughout much of central Saskatchewan and extend down into the southeast corner of the province. Most of our deposits are 3,000 to 3,500 feet underground, but are deeper farther south. First discovered in 1942, additional discoveries later in the '40s and into the 1950s confirmed enormous deposits of the mineral, with recoverable reserves estimated to account for almost half of the world's total reserves.

These days, potash is fertilizing much more than petunias - it's helping grow our economy and, by extension, our province. Recently released figures from the 2011 Census showed that Saskatchewan grew by 65,224 people between 2006 and 2011, the largest population growth in any census period since Statistics Canada started doing it in 1956 and every five years thereafter. StatsCan called Saskatchewan a "turnaround," citing earlier periods of decline.

Our growth of 6.7 per cent was the third highest among the provinces, behind only Alberta and British Columbia. In a government news release, Premier Brad Wall said: "That is because of our growing economy, plenty of job opportunities and our great quality of life."

"It benefits us all," Energy and Resources Minister Bill Boyd said of potash. Saskatchewan is the largest producer of potash in the world, and it's one of our province's main exports.

The annual value of potash sales exceeded $3 billion in each of the last five years. The current capacity of the Saskatchewan potash industry is said to be almost 21 million tonnes, or about 30 per cent of the world's total. About five per cent of our potash is used here in Canada; 40 per cent goes to the U.S., with the rest going to Latin America and Asian markets.

Saskatchewan and its reserves of potash have been attracting ever-increasing attention and investment from both Canadian companies, such as the Potash Corporation of Saskatchewan (PCS), and from foreign enterprises. Australian mining giant BHP Billiton, which had tried to buy PCS two years ago, is relocating its Diamond and Specialty Products division - which is responsible for the company's Saskatchewan potash projects, among other ventures - from Vancouver to Saskatoon. Billiton is also continuing with its plans for the Jansen Project. Located 140 km east of Saskatoon, the proposed mine is expected to produce eight million tonnes of potash a year during its lifetime of 70 years. And, K+S Aktiengesellschaft from Germany has approved more than three billion dollars for its Legacy Mine. Located about 50 km north of Moose Jaw, production from that project is expected to begin in 2015.

Other large mining companies, such as Vale and Rio Tinto, and a number of junior mining companies are also exploring for potash in Saskatchewan.

Boyd said the heightened interest in Saskatchewan potash shows an appreciation for both the rich and abundant resources here and the attractive business climate Saskatchewan offers the industry. "Our existing potash producers are following through with $13.2 billion worth of expansions to their existing mines over the next decade," Boyd said. "Add to this the other projects on the drawing board by new companies, and the future looks very bright indeed for our potash industry and, by extension, for the future of our province."

With the world population now at seven billion and growing, all those people will continue to need what Saskatchewan has, both in terms of our food production and the products, like potash, that grow economies around the world.

If the potash market continues on its current upward trend, it will also continue to fertilize our province's strong upward growth, to the benefit of us all. And, that ain't just pushing petunias!