Twitter

Saskatchewan Mining

Mining plays a vital role in southeast Saskatchewan – by David Willberg (Saskatchewan Lifestyles – May 22, 2014)

http://www.sasklifestyles.com/section/estlifestyles

The Westmoreland Coal Company is using the upcoming Saskatchewan Mining Week as an opportunity to promote the impact that mining has on southeast Saskatchewan.

Kraig Wanner has been the general manager for Westmoreland Coal’s Estevan mines for a little more than a year, and the char and activated carbon plants for about eight months. He said that the company’s mandate is to provide the lowest cost fuel to SaskPower, while generating employment for hundreds of people, and support for many different initiatives.

Between the two mines, a char plant and an activated carbon plant, Westmoreland has nearly 375 employees in the Estevan area, with 295 employees who are part of the United Mine Workers of America, and another 75 staff and management.

Safety plays an important role in the mines’ operations, Wanner said. “I would hope that would be the case for any workforce in Saskatchewan, but especially at the mine site where we’re dealing with big equipment,” said Wanner.“All of our employees have to be focused on the task at hand in whatever their classification of job is at the mine site.”

Read more

Cameco delays Millenium Mine – by Jason Warick (Regina Leader-Post – May 20, 2014)

http://www.leaderpost.com/index.html

Cameco Corp.’s decision to delay construction of its Millennium uranium mine is one more reminder of Saskatchewan’s vulnerability to the whims of commodities markets, experts say.

However, the province’s economy should be strong enough to weather the recent troubles in the uranium and potash industries, they add. Robust oil prices, a record grain harvest and other factors provide reasons for optimism. “Saskatchewan has got everything the world wants,” said Colin Boyd, professor of management in the University of Saskatchewan’s Edwards School of Business.

Boyd said reliance on any single commodity “can be a roller-coaster ride,” but Saskatchewan is diversifying. “I think we’ll be absolutely fine,” he said.

Fellow Edwards School professor Brooke Dobni said there may not be record economic growth every year, but the long-term outlook is good. “We’re not at the peak, and there are so many variables we don’t control, but we’re still doing OK, Dobni, the school’s chair for Saskatchewan enterprise, said.

Cameco’s Millennium uranium mine project is 36 kilometres from the company’s Key Lake operation in the Athabasca Basin. Cameco owns 69.9 per cent of the project and serves as the operator, with Japan’s JCU Exploration Co. owning the remainder.

Read more

[Saskatchewan] Mining exploration spending forecast to mirror ’13 – by Scott Larson (Regina Leader-Post – May 2, 2014)

 http://www.leaderpost.com/index.html

The amount of capital invested in mining exploration in Saskatchewan this year will mirror last year’s total of $236 million, says Gary Delaney, chief geologist with the province’s Ministry of the Economy.

“Most of the focus is between potash and uranium, but we will see a few million in gold and I suspect we might see a little more optimism in the diamond area,” said Delaney, who spoke at the fourth annual Saskatchewan Mining conference Thursday in Saskatoon.

The ministry conducts a survey to see how much was spent last year and what people are planning to spend this year (estimated at $234.6 million). That ranks Saskatchewan fourth in mining exploration expenditures in Canada.

Spending in 2014 will be split fairly evenly between juniors (who don’t have production) and major producers, he said. It has been a rough few years for junior miners trying to raise capital. Between 2012 and 2013, the amount of money junior companies were able to raise dropped by 50 per cent. “These are pretty rough times,” Delaney said.

Uranium There are bright spots, like the Patterson Lake South uranium discovery by Fission and Alpha Minerals in the Athabasca Basin. Companies with stakes in that area have been able to raise money.

Read more

NEWS RELEASE: Harper Government Promotes Responsible Resource Development in Northern Saskatchewan

LA RONGE, SASKATCHEWAN–(Marketwired – April 25, 2014) – Western Economic Diversification Canada

Today, Rob Clarke, Member of Parliament for Desnethé-Missinippi-Churchill River, on behalf of the Honourable Michelle Rempel, Minister of State for Western Economic Diversification, announced a $350,000 federal investment toward the monitoring of caribou herds in northern Saskatchewan. Data collected from tracking Woodland Caribou will help mining and construction firms, as well as local and provincial governments, to cost-effectively prepare responsible resource development plans that include measures to protect the herds.

The Saskatchewan Mining Association (SMA) is partnering with Western Economic Diversification Canada (WD) and the University of Saskatchewan (U of S) to conduct the comprehensive five-year study. In March, researchers with the U of S Department of Biology ‘collared’ 120 Woodland Caribou, outfitting them with the latest global positioning satellite (GPS) technology.

Under Environment Canada’s Species at Risk Act, Canada’s Woodland Caribou population is considered ‘threatened’. Until now, limited data on Woodland Caribou prevented industry from developing appropriate plans to alleviate disturbances to the animals’ habitat. Information collected from this tracking program is expected to close this data gap, allowing mining and construction companies, as well as government, to develop strategies to protect the herds.

Read more

Muskowekwan First Nation votes to approve on-reserve potash project – by Henry Lazenby (MiningWeekly.com – April 16, 2014)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Project developer Encanto Potash on Wednesday reported that the Muskowekwan First Nation (MFN) had voted with a strong majority in favour of continuing to develop the first producing potash mine on First Nation land – the MFN’s reserve, located 100 km north-east of Regina, Saskatchewan.

The two project partners said that six ballots for the MFN surface designation vote had passed, including those allowing Encanto to build and operate a potash solution mine on both reserve land and pre-reserve land and to lease certain areas in support of the mine.

The project is being undertaken by First Potash Ventures, a partnership between Encanto Potash and Muskowekwan Resources, which is owned by the MFN. The project is expected to provide economic opportunities for the MFN, as well as the surrounding area, by providing training and employment opportunities during the construction and operation of the mine.

“Once again, my people have demonstrated that we are interested and greatly in favour of seeing an operating potash solution mine on our land and enjoying the associated benefits through educational advancements, increased employment opportunities and self-sourced revenue generation,” MFN chief Reginald Bellerose said.

Read more

At BHP, the stars align for second run at Potash Corp – by Boyd Erman (Globe and Mail – April 15, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

A window is opening for BHP Billiton Ltd. to once again try a takeover of Potash Corp. of Saskatchewan.

Speculation is intense in the fertilizer industry that BHP may mount another campaign to win over Saskatoon-based Potash Corp. after being shot down in 2010. It failed the federal government’s murky “net benefit test” after a strong push from a Saskatchewan government that opposed the transaction.

Bankers, executives and advisers on the political side agree that BHP would be crazy not to look again. To be clear, there is no sign that any potential deal is under way. But there are numerous reasons that people are talking about the possibility.

The numbers work. The personalities are closer to working. Even the politics are not insurmountable because the landscape has shifted, especially in Saskatchewan. Finally, what was true in 2010 remains true now: Owning Potash Corp. is the best way to get into the potash business.

Read more

NEWS RELEASE: IMII, Mitacs and U of S Partner to Lead Minerals Industry Innovation in Canada

SASKATOON, SASKATCHEWAN–(Marketwired – April 11, 2014) – Saskatchewan’s International Minerals Innovation Institute (IMII), the national research and training organization Mitacs, and University of Saskatchewan are partnering on a novel research and training initiative through an investment valued at more than $600,000.

The Mitacs Industry Executive in Residence-Minerals (MIER-Minerals) will identify and create new research initiatives that will lead to innovation in the minerals sector, strengthening companies and enhancing Canada’s economy.

The MIER-Minerals is the first of several such positions Mitacs will support nationally across various industry sectors. The goal is to support innovation, research and training to enhance the global competitiveness of these industries and encourage collaboration between companies and universities across Canada.

Engin Özberk, IMII Executive Director and Senior Technical Advisor, will assume the role of the MIER-Minerals at the U of S.

“With more than 40 years of experience and national leadership in the minerals research and innovation sector and strong relationships with Saskatchewan’s leading potash, uranium and other minerals companies, Özberk is ideally positioned to catalyze industry-researcher collaborations for a world-class minerals industry,” said Karen Chad, U of S Vice-President Research.

Read more

Challenges ahead to sustain Saskatchewan’s rate of economic growth – by Meaghan-Craig (Global News – April 9, 2014)

 

http://globalnews.ca/toronto/

SASKATOON – Experts and mining leaders are weighing in on a new report that suggests Saskatchewan cannot sustain its current rate of economic growth.

According to a new study released Wednesday, while it’s a good time to be living in Saskatchewan, we may be relying too heavily on high commodity prices.

“For opportunity to continue you can’t rest on your laurels and what worked 10 years maybe doesn’t work the same way anymore,” said Doug McNair, with Certified Management Consultants of Saskatchewan.

The report by The Institute of Certified Management Consultants of Saskatchewan says the province’s rapid growth has been strongly influenced by the global commodity supercycle.

Read more

Doyle’s exit from Potash well-timed – for him – by Brian Milner (Globe and Mail – April 9, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Potash Corp. of Saskatchewan faces a future that is far more complicated than its illustrious recent past. The golden era of buoyant sales, tight supplies and soaring stock values are plainly in the rear-view mirror. And now after a tough year marked by plunging profits and steep cutbacks, the captain is leaving the ship just as it sails into even rougher waters.

Bill Doyle will depart June 30 after 27 years with the company, the last 15 as CEO. Mr. Doyle, who is approaching 64, is certainly entitled to rest on his laurels. But his timing raises concerns about the course that the company intends to chart. And the fact that the board has anointed an outsider, Jochen Tilk, as his successor doesn’t cast a favourable light on Mr. Doyle’s mentoring abilities.

One marker of a successful tenure in the corner office is the ability to foster a coterie of senior executives capable of stepping into the top job. But in Potash’s case, a three-year search brought them to the door of Mr. Tilk, a 30-year mining industry veteran whose main attraction was apparently his “focus on operational excellence and disciplined growth,” in the words of board chairman Dallas Howe. That sounds to me like someone preparing for more heavy cost-cutting of the kind that shuttered some production and lopped off about 18 per cent of the Potash work force in December.

Read more

New Potash CEO takes reins amid tough landscape – by Rachelle Younglai (Globe and Mail – April 8, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Potash Corp. of Saskatchewan Inc. made the surprise appointment of a new chief executive officer with no fertilizer experience as the miner trudges through one of its most difficult periods in its history.

Jochen Tilk, the former chief executive of Inmet Mining Corp., has worked in the Canadian mining industry for more than 25 years and is recognized as a skilled operator who built his company into a respected metal producer.

But Mr. Tilk is unknown in the potash industry, where a handful of players have held sway over prices for decades and built their market share through negotiated deals with fast-growing economies like China and India.

He will become CEO as the Saskatoon-based company struggles to adjust to lower potash prices after Russian-based producer OAO Uralkali ended a partnership with its Belarus rival, a cartel-like arrangement to sell the fertilizer. Before the breakup, the Russian-Belarussian union along with Potash Corp. and its North American equivalent called Canpotex Ltd. controlled 70 per cent of the global potash market.

Read more

Potash Corp. takes dramatic U-Turn with new CEO hire Jochen Tilk – by Peter Koven (National Post – April 7, 2014)

The National Post is Canada’s second largest national paper.

To many people, Bill Doyle is Potash Corp. of Saskatchewan Inc.

His bombastic personality and eternally optimistic outlook played a key role in bringing the sleepy fertilizer industry to the attention of investors. His oligopolistic practices were a model for the sector. His strategy and vision never wavered, even when BHP Billiton Ltd. came knocking with a $40-billion offer. And his 15-year tenure as chief executive is the longest of anyone among Canada’s 30 most valuable publicly-traded companies.

It is simply impossible to think of Potash Corp. and not think of Mr. Doyle. The 64-year-old is a rock star within the fertilizer business, a friend or a frenemy of absolutely everyone, be they customers, investors or rival producers. They all have stories to tell about Bill Doyle, the industry’s quintessential promoter and senior statesman.

Yet despite all of Mr. Doyle’s success, Potash Corp. has gone in a very different direction with his replacement. Indeed, the company has hired someone who is his opposite in almost every way. Jochen Tilk is a disciplined, conservative executive known for his strong operational skills. Unlike Mr. Doyle, he has avoided the limelight and has never spouted conspiracy theories on investor conference calls.

Read more

NEWS RELEASE: PotashCorp Announces Selection of Jochen Tilk as Next President and CEO

Tilk to assume CEO role in July 2014; Doyle to continue as Senior Advisor until June 2015, allowing for planned and seamless transition

Listed: TSX, NYSE Symbol: POT

SASKATOON, April 6, 2014 /CNW/ – Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced that the Board of Directors has appointed Jochen Tilk as President and CEO, effective July 1, 2014.

After 27 years of dedicated service – during which PotashCorp grew to become the world’s largest crop nutrient company – Bill Doyle will step down as President and CEO, but remain employed with the company as a Senior Advisor through June 2015.

“We’re pleased to announce Jochen Tilk as the next President and CEO of PotashCorp. Jochen is known for his focus on operational excellence and disciplined growth, and the entire Board agreed he was the right person to lead the company forward,” said Dallas Howe, Chairman of the Board. “The Board undertook a rigorous, three-year selection process for the new CEO that included the use of international executive search firms and a review of both internal and external candidates.”

“Jochen’s successful track record, his reputation among peers and commitment to the industry made him the ideal candidate to serve our customers and lead PotashCorp through our next phase of growth,” said Bill Doyle.

Read more

Rio set for potash push – by Matt Chambers (The Australian – March 24, 2014)

http://www.theaustralian.com.au/business

Rio Tinto could start building a Canadian potash project within three years, according to its joint venture partner, as the big miner chases a fertiliser push by BHP Billiton to position itself at the forefront of a global food boom.

There is also growing speculation Rio will make a bigger plunge into the sector through an acquisition or joint venture of neighbouring junior Western Potash, or even by joining BHP.

Last week, Rio revealed it had made a “tier-one” potash discovery at its KP405 lease near Regina, in Saskatchewan’s Elk Point Basin. This is the basin where BHP is spending $US3.8 billion ($4.2bn) sinking big mine shafts and building associated infrastructure about 200km to the north to be ready for expected growth in global demand for the crop fertiliser.

Rio’s Russian partner, Acron, has called the find “massive” and, based on a Rio report, capable of supporting a long-life, low-cost potash mine. Still, KP405 is lower grade, has been proved up to a fraction of the certainty and is less than a third the size of the resource BHP is targeting. It is also nearly twice as deep, meaning mining methods will be different and probably more expensive.

Read more

$3B potash mine possible for Sedley – by Bruce Johnstone (Regina Leader-Post – March 19, 2014)

http://www.leaderpost.com/index.html

Rio Tinto partners with North Atlantic

A brief mention of a joint venture project with North Atlantic Potash Inc. in Rio Tinto’s 2013 annual report has the potash industry buzzing about a large find of potash near Sedley, about 30 kilometres southeast of Regina.

As it turns out, Saskatoon-based North Atlantic internally announced the discovery of 329 million tonnes of potash on its website in December, but never released the information to the public, according to a North Atlantic employee.

In the annual report, Rio reported that the Sedley area discovery contained “encouraging potash grade and thickness,’ according to an article earlier this week in The Australian, the country’s largest national newspaper.

The joint venture between Rio Tinto Potash Management, a subsidiary of Rio Tinto, one of the largest mining companies in the world, and North Atlantic Potash, a subsidiary of JCS Acron, one of Russia’s largest mining companies, was formed in 2011.

Read more

Saskatchewan Potash History – by John Burton (The Encyclopedia of Saskatchewan – Unknown Date)

http://esask.uregina.ca/home.html

Potash production is a major Saskatchewan industry, which has played a significant role in the economy for over 40 years. The ten producing mines in the province are among the largest and most modern in the world. Underground potash deposits were laid down by evaporation in an ancient inland sea; three major layers of potash are separated by layers of salt. Potash deposits are located from the Alberta border west of Saskatoon, through much of the central portion of the province, to the southeast corner and beyond. Much of Saskatchewan’s deposits are 3,000-3,500 feet underground; but they are deeper further south, beyond conventional shaft and mining techniques.

Operations are located where potash-bearing ore is 7-11 feet thick. Most potash in Saskatchewan is in the form of potassium chloride (KCl). Recoverable reserves are well over 100 billion tons. Of the potash produced, 95% is used for fertilizer, and the remainder for industrial purposes. Potash was first found in Saskatchewan in 1942 during oil drilling. Further discoveries in the 1940s and early 1950s confirmed enormous deposits. However, three projects in the 1950s encountered formidable water problems during shaft sinking, which hampered development.

Production commenced in 1962 when water problems were overcome at the International Minerals and Chemical (IMC) mine near Esterhazy; the Potash Company of America (PCA) then rehabilitated its flooded mine. A surge of development by other companies resulted in twelve companies opening ten mines by 1970.

Read more