Our Competitive Edge
Largest potash producer in the world, accounting for approximately one-third of total production in 2017 and hosting almost half of the globe’s potash reserves Saskatchewan is home to the world’s largest uranium mine and largest high-grade uranium deposits; it is the world’s second-largest primary uranium producer, accounting for 100% of Canada’s uranium and for more than 22% of global primary uranium production in 2016
Saskatchewan has a variety of other minerals including: gold, base metals, clays, coal, diamonds, platinum group metals, sodium sulphate, silica sand and rare earth elements High-quality, extensive and easily accessible geoscience information. Online mineral deposit models can be found on the Saskatchewan Mining and Petroleum GeoAtlas Mineral dispositions can be acquired online through the Mineral Administration Registry Saskatchewan (MARS) system
The new Mineral Development Strategy includes the release of new, publically available, airborne geophysical survey data and introduction of the Targeted Mineral Exploration Incentive, which provides a 25% rebate on eligible drilling costs in a region of high potential for base metals, precious metals, and diamonds.
Sales: The value of mineral sales was $6.7 billion in 2017. Natural Resources Canada (NRCan) estimates that Saskatchewan accounted for 13% of national sales value, fourth highest in the country. In 2017, Saskatchewan’s leading mineral for the value of sales was potash, valued at $4.8 billion. All of Canada’s operating potash mines are located in Saskatchewan.
Exploration Expenditures: A survey conducted by the Ministry of the Economy showed that $170 million was spent on exploration and development programs in 2017 compared to: $199 million in 2016, $211 million in 2015, $216 million in 2014 and $236 million in 2013. Exploration spending continues to be well above historic averages, and it is estimated that $193 million will be spent in 2018.
Mining Capital Expenditures: NRCan reported that Saskatchewan continued to be a leader in 2017 with intended capital investments in the mineral extraction sector, representing about 23% of national expenditures, second only to Ontario.
Technology: Saskatchewan mines feature leading-edge technology, developed and manufactured in the province, such as: battery-powered mine vehicles, continuously running machinery and remote-controlled underground mining equipment, artificial ground freezing and state-of-the-art tailings management facilities
Mineral Wealth
Potash: Exceptionally large, high-quality deposits, low production costs and a favourable regulatory regime have resulted in the world’s largest potash industry. There is significant capacity expansion to existing mines underway, in addition to the commissioning of the province’s first new mine in nearly 50 years.
In 2017, Saskatchewan produced a record 12.4 million tonnes of K2O with a sales value of $4.8 billion. The Saskatchewan potash industry is nearing the completion of expansions valued at $13.5 billion, which have substantially increased productive capacity in preparation for continued growth in the market. Saskatchewan’s newest potash mine, operated by Germany’s K+S Potash Canada, has now been in production for over a year, while other companies, such as BHP Billiton, Yancoal, JSC Acron and Rio Tinto, are continuing to evaluate projects for new mine development.
By conservative estimates, Saskatchewan could supply world potash demand at current levels for several hundred years.
Uranium: In 2017, Saskatchewan produced 34.2 million pounds of U3O8, with a sales value of $1.4 billion. Since 2003, there has been a high level of exploration in the province resulting in more than $1.5 billion invested. This activity has led to significant new discoveries and has advanced numerous exploration and development projects. The Athabasca Basin, located in northern Saskatchewan, has the largest high-grade uranium deposits in the world. The province is the globe’s second-largest primary uranium producer and home to the world’s largest uranium mine.
Saskatchewan is recognized as a stable, long-term source of uranium, with strong potential for new discoveries and investment opportunities.
Diamonds: Extensive exploration and evaluation is underway in one of the world’s largest diamond-bearing kimberlite fields and new discoveries in other parts of the province. Saskatchewan’s Fort à la Corne area has one of the world’s largest kimberlite fields, with the surface area of some kimberlites exceeding 200 hectares. Star Diamond Corp., in partnership with Rio Tinto, is currently evaluating the Star-Orion South project, which is estimated to contain more than 66 million carats.
The discovery of diamond-bearing kimberlite in northcentral Saskatchewan has reinvigorated grassroots diamond exploration on the exposed Pre-Cambrian shield. Unlike many other jurisdictions, areas of diamond potential are close to infrastructure. Gold: The Seabee Operation produced 83,998 ounces of gold in 2017, the fourth consecutive year of record annual production. Exploration expenditures have focused on the La Ronge Greenstone Belt and north of Lake Athabasca. There are areas with high gold potential that remain underexplored.
Coal: Saskatchewan is the third-largest producer in Canada, with annual production of about 10 million tonnes of thermal coal or lignite, and resources in excess of 5 billion tonnes. Saskatchewan also produces industrial minerals, such as bentonite, clays, salt, silica sand, sodium and potassium sulphate, with strong potential for production of mineralized brines, kaolin and building stone.
Base Metals: Small amounts of copper and zinc are currently produced by Hudbay Mining from the Saskatchewan part of the Callinan ore body at Creighton/Flin Flon. There is currently one advanced stage project and potential exists in several other parts of the province.
The Investment Climate
According to the Fraser Institute’s 2018 Survey of Mining Companies, which evaluates 83 jurisdictions, Saskatchewan ranks 3 rd in the world for mining investment attractiveness
High standards for environment, sustainable development and safety
World-class research and development, led by the universities of Saskatchewan and Regina, the Saskatchewan Research Council, the International Minerals Innovation Institute and the Canadian Light Source synchrotron
One of the world’s largest exploration sample processing labs, with expertise in uranium and diamonds
Central location with excellent transportation services to North American and offshore markets
Firm commitment to enhance and sustain industry competitiveness
Lower Business Taxes
No corporate capital tax on new capital investment
No payroll tax
No health insurance premiums
6% provincial sales tax, the lowest of the nine provinces that have a sales tax
12% corporate income tax rate
14.75% top marginal personal income tax rate, third lowest in Canada Tax Credits
10% mineral exploration tax credit for Saskatchewan residents
10% provincial income tax credit for scientific research and development expenditures Fuel tax rebate for mineral exploration
Royalty Framework
Competitive royalty regimes, including 10-year royalty holidays for base and precious metals produced in the province
For more information, contact:
Kathryn Pollack
Assistant Deputy Minister
Saskatchewan Ministry of Energy and Resources
11th Floor, 1945 Hamilton Street
Regina SK S4P 2C8
Phone: (306) 787-3524
Email: [email protected]
Gary Delaney, PhD, P.Geo.
Chief Geologist
Saskatchewan Ministry of Energy and Resources
11th Floor, 1945 Hamilton Street
Regina SK S4P 2C8
Phone: (306) 787-1160
Email: [email protected]
