Q & A

 

May 2009

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.

HOW MANY JOBS DOES SASKATCHEWAN'S MINING INDUSTRY CREATE?

The mining industry creates direct and indirect employment for about 25,000 people in the province. 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.

HOW DOES SASKATCHEWAN MINING COMPARE TO THAT IN OTHER PROVINCES?

In 2008, Saskatchewan was Canada's leading mineral producing jurisdiction with production valued at over $9.7 Billion.  Saskatchewan accounted for 21.5% of Canada's output in 2008, an increase of over 7% from 2007.

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 uranium (the only two mineral commodities for which Canada is the world's leading producer). Canada produces about one-third of the world's potash supply which includes some production from a PCS mine in NB. Saskatchewan is Canada's only uranium producer accounting for 22% of world production. With extensive reserves of both these commodities Saskatchewan is in a position to capture new market opportunities and 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 in 2008 was a record $9.7 billion; doubling the previouis record of $4.6 B set in 2007.  Escalating potash prices resulted in potash accounting for about 82.5% of this total, and uranium about 15.5%.

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 in the prairie evaporite.

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. 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 2008 reached a new record of $474 Million - ten times the inctrease of the level of expenditure seen in 2005!  Exploration expenditures in 2009 are expected to be reduced to approximately $244 Million, reflecting the junior mineral sector's difficulty in raising financing on the equity markets.  In 2009 exploration for industrial minerals, including potash and coal, will overtake both uranium and diamonds to become the focus of mineral exploration in Saskatchewan.

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.

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.  In 2009, mining companies are forecast to provide over $2 Billion in direct revenues accounting for 20% of the Government of Saskatchewan's total  budget revenues. 

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.