Sask. potash mine gets $100M boost from feds to cut carbon emissions

The Government of Canada and mining giant BHP have committed to making the potash mine outside Jansen, Sask. the world’s largest and greenest.

“We want to be the green supplier of choice to the world,” Minister of Innovation, Science and Industry François-Philippe Champagne said.

The federal government will spend $100 million on what it calls state-of-the-art mining systems. The Jansen project is estimated to cost up to $5.7 billion in the first phase, which is expected to take five years and have an annual capacity to produce around 4.4 million tonnes of potash.

The federal deal covers a $400 million component of that project, said Ragnar Udd, president of BHP's Minerals Americas division.

The systems use 60 per cent less equipment underground than traditional potash mines while being two-and-a-half times more productive.

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“We're committed to emissions reductions, you will see 50 per cent less carbon dioxide coming out of this mine than a traditional potash mine,” Udd said.

“We're committed to the responsible use of water. We will use 60 per cent less water than your average mine, in terms of production of potash on a ton-per-ton basis, and we expect that Jansen will generate the lowest direct on-site emissions intensity of any potash mine in North America.”

Udd says 3,500 jobs will be created at peak construction, while 600 employees will work at the mine long-term.

“We will have a gender-balanced workforce from day one, and 20 per cent of our workforce will be an Indigenous workforce, as well partnering with our local Indigenous groups and tribes that actually work closely together.”

Champagne says the future is bright when it comes to greening the supply chain in Canada.

“We've been transforming the steel industry to produce green steel which we're going to be one of the first producers in the world,” he said. “We're going to be the first producer of green aluminum, we're looking at green batteries, now we're going to be producing green potash.”

“My message when I was at the Economic Forum in Europe, and when I'm going to be in Japan and Korea later on this month, is that we can be part of the solution. We could be the green supplier of choice for the number of critical minerals you need, and parts and equipment.”

BHP says as the world population continues to grow, growing crops with less arable soil through improved agricultural practices and fertilizers will be a must.

“If you're a world agricultural producer going forward and looking at options around secure supply chains, Canada's going to be front and centre,” said BHP CEO Mike Henry.

- With Reuters files