Q & A

May 2011

WHAT IS THE ECONOMIC IMPACT OF MINING IN SASKATCHEWAN?

Mining is GREAT for Saskatchewan. It is the province's third largest industry and a significant contributor to the provincial economy spending over $3 billion annually on wages, goods and services, and generating over $2 billion annually to the provincial government revenue through royalties and taxes. Mining has been identified as one of the key growth sectors for the Saskatchewan economy.

In 2008, mining (direct, indirect and induced) accounted for $7.7 billion in GDP or 12% of the total provincial economy.

From 2008 - 2028, the Saskatchewan mineral industry will invet over $43 billion in expansions and new mines.  This translates to new investments of $6 M a day.  During this period, mining will generate a further $28 billion in provincial revenues or $1.4 billion per year, for a total of over $50 billion and mining will contribute an additional $9.5 billion per year to provincial GDP.

HOW MANY JOBS DOES SASKATCHEWAN'S MINING INDUSTRY CREATE?

The mining industry creates direct and indirect employment for about 30,500 people in the province. which translates into 6% of total employment or almost 1 in every 16 jobs. A large percentage of these people live and work in rural or northern Saskatchewan. The average weekly salary of an employee in the mining industry is almost twice that of the average weekly salary of Saskatchewan residents.

From 2008 - 2028 mining employment (direct, indirect and induced) will see its contribution rise to 17% of total employment or almost 1 in 5 jobs.  Mining will generate over 286,000 person years of direct employment in construction in operational activity.  

HOW DOES SASKATCHEWAN MINING COMPARE TO THAT IN OTHER PROVINCES?

Saskatchewan is a leading mineral producer in Canada.  In 2008, Saskatchewan was Canada's leading mineral producing jurisdiction with production valued at over $9.7 Billion.  In 2009, Saskatchewan mineral proeduction was valued at $5 billion, accounting for 15.6% of Canada's mineral output.  With strong potash and uranium production in the first quarter in 2010, Saskatchewan should increase its proportion of Canada's mineral output.

HOW DOES SASKATCHEWAN MINING RANK INTERNATIONALLY?

Saskatchewan is a prominent player in the global mining picture contributing to Canada being the world's largest producer of both potash and second largest producer of uranium. Canada produces about one-third of the world's potash supply with most of that production originating in Saskatchewan. Saskatchewan is also Canada's only uranium producer accounting for 20% of world production. With extensive reserves of both these commodities Saskatchewan will continue to dominate world markets for many years to come.

WHAT IS THE VALUE OF MINERAL SALES IN SASKATCHEWAN?

The total value of mineral sales from Saskatchewan in 2009 was $5 billion; down from the record high of $9.7 billion established in 2008, but above previous years.  Other mineral sales include coal, gold, salt, silica sand and sodium sulphate. 

WHAT IS THE FUTURE OF MINING IN SASKATCHEWAN?

Mining has a bright future in the province. Not only will we continue to dominate world potash and uranium markets for many years to come but Saskatchewan also has tremendous untapped mineral resource potential - for example the emerging diamond play east of Prince Albert has the potential to add another world class mining camp to our stable of resources. There is also potential for addition gold and base metal production and for new commodities such as rare earth elements and magnesium and other minerals from brines.

WHAT IS THE ROLE OF MINERAL EXPLORATION IN SASKATCHEWAN MINING?

Exploration is the key to sustainability in the mining industry - it is often referred to as the research and development of the industry as exploration finds new deposits to replace those that are being mined. Given the long lead times between an initial discovery and mining (10 - 20 years on average) it is critical to maintain active exploration programs in the province. In the past 3 years, over $1 Billion has been invested in mineral exploration in Saskatchewan, primarily for uranium.  Exploration expenditures in 2009 were $293 million, down from the record $474 million spent in 2008, but - ten times the increase of the level of expenditures seen in 2003! Expenditures in 2010 are expected to be similar to 2009 levels.  In 2010 exploration for industrial minerals, including potash and coal, will continue to be the primary exploration target, however uranium and gold sectors are signaling improved financing potential.

HOW MUCH SASKATCHEWAN LAND IS USED FOR MINING?

Despite its significant economic impact, in total mining only occupies 0.1% of the total landmass of the province, an area smaller than the city of Saskatoon.

HAS MINING BECOME ENVIRONMENTALLY SENSITIVE AND RESPONSIBLE?

Environmental stewardship is important to the mining industry and environmental practictioners are an important part of the workforce at all mine sites.  Each year, the Saskatchewan mining industry devotes considerable resources and millions of dollars to reduce its environmental footprint, including activities such as site monitoring, prevention and mitigation of environmental impacts, decommissioning and reclamation and ongoing research efforts. Mining companies must now have an approved reclamation plan and financial assurance in place before they are given a licence to operate.

IS MINING A SAFE INDUSTRY?

Mining is one of the safest industries in the province, and for the past 17 years, has averaged less than one Lost Time Accident (LTA) for every 200,000 hours worked.  

Another indicator of the Saskatchewan mining's premier safety record is that mining has some of the lowest Workers' Compensation Board assessment rates in the province - lower than workers in the health or government sectors - a result of continuing efforts to reduce accidents through improved training and safe wrokplace practices.

Safety training at Saskatchewan mine sites is continuous with new workers having an extensive safety training orientation of between 32 and 40 hours supplemented by ongoing safety training.  There are over 130 designated safety professionals working at the mine sites.

HOW DOES MINING AFFECT EACH OF US IN SASKATCHEWAN?

Mining provides an economic foundation for all of Saskatchewan residents - northern, rural and urban. Mining companies in Saskatchewan directly contributed almost $2 Billion in revenue to the provincial government in 2008.  These revenues support government programs and services such as health care, education and infrastructure development.  The importance of these revenues to Saskatchewan's economy was underscored when 2009 revenue contributions to government by industry were decreased, which necessitated reductions in government programming.

Globally, the mining companies in Saskatchewan are feeding and fueling the world. Potash is used as a fertilizer to improve crop quality and quantity to feed the world's growing population on a decreasing area of arable land, and uranium is providing a source of non-GHG emitting energy to countries all over the world. Closer to home, coal mined from southern Saskatchewan provides almost 60% of the base power load for Saskatchewan's electrical energy. Virtually everything around us from computers, jewelry, cars, windows, cellphones, wall board, cosmetics, medical treatments, vitamins, toothpaste all contain components of minerals. We have a saying in the industry . . . "if it can't be grown it was probably mined." And as noted above, many of the fertilizers that help things grow are mined right here in Saskatchewan.  The benefits and products from mining surround us every day.