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Brazilian mining giant Vale SA is postponing a $3-billion potash project in Saskatchewan, but the province says this is just a minor setback in the huge runup in potash investment that will continue to flow in the coming years.
The huge mine was to be developed near Kronau, a town of about 200 people, 30 kilometres southeast of Regina. It would have employed more than 1,000 workers during construction, and hundreds would have been needed to operate it once it was opened. The mine was expected to produce 2.9 million metric tonnes of potash a year.
But the mine, set to be built over the next three years, will not go ahead as planned because of global economic uncertainly, Vale chief executive officer Murilo Ferreira told reporters in Rio de Janeiro Thursday. Vale is committed to austerity, and may delay other investments as well, he said.
The mine was expected to be a boon to the region, not just in terms of employment, but in sectors that traditionally spring up around big projects, including housing and retail.