Multi-billion-dollar Sask. mine an 'informed gamble' that could pay off big for region, expert says
Keith Willoughby likens BHP’s $7.5 billion bet on the Jansen potash mine to a hockey team drafting a player who might not play for years.
It’s an “informed gamble.”
“You have no idea in seven years what the condition of the team is going to be like, what the condition of the player is going to be like,” said Willoughby, dean of the Edwards School of Business at the University of Saskatchewan.
“I guess we have to defer to the expertise of BHP and other companies like Nutrien and Mosaic that have done this, that we assume they've done their due diligence with the preparation of looking at demand forecasting.
“But again that's the challenge in all of this. That's where it's a bit of a crystal ball, in terms of yes we're building supply now, but it doesn't materialize for a while. What will the demand look like in 2027, 2028, 2029? Again, anybody's guess on that topic.”
He said new head office jobs will cause a “multiplier effect” of people moving to the city and the province, creating a foundation for economic growth, he said. The mine will “entrench” the position of Saskatchewan - which already accounts for 30 per cent of the world’s production of potash - as a leader in the industry.
The announcement that construction is going ahead will also create good vibes, which he said are also important.
“I am convinced that if you look at the business barometer of this province and the economic barometer, people see these signals and it's important. We're going through right now, obviously, a pandemic that all of us have been impacted by. We've seen one of the worst droughts ever in this province.
“So this is news right now that is really good for our psyche, if you will, as a province, it's good for the business opportunity, it will create jobs and have an opportunity of providing economic development.”
Still, he doesn’t see it as indicating a 2007-style economic boom in Saskatchewan.
“I think circumstances are much different. We've gone through a pandemic and we're still going through the aftermath, if you will, of the pandemic's impact. I think this speaks to very positive news for the province.
“I'm not sure I would go out and suggest that it's the bellwether for a boom that's going to appear that's going to be similar to what we had seen over a decade ago.”
Do you have a story idea or news tip? Email us.
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.