SASKATCHEWAN
MINING REPORT
S A S K AT O O N STA R P H O E N I X
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Mosaic employees at work. Saskatchewan is the world’s largest potash producer with 32 per cent of global production.
S UP P LIED BY MOSAIC/GR E G HUSZAR P HOT OGR AP HY
HIGH GLOBAL DEMAND FOR CRITICAL MINERALS Rich in resources, province emerging as a key player in the sector PAT R E D I G E R
They’ve been declared “critical minerals” for the role they play in the modern, low-carbon world, and Saskatchewan is a key supplier. The global economy is increasingly dependent on minerals and metals for clean technologies such as electric vehicles and advanced batteries, as well as for defence, security and high-technology manufacturing. Mark Boyland, director of the Industry and Economics Analysis Division for Natural Resources Canada, says there is no single definition of what constitutes a critical mineral, but many countries and jurisdictions — including the United States, European Union, Japan and Korea — have declared them. “For Canada, critical minerals are those which satisfy one of the three following criteria: a mineral on an ally’s critical minerals list which Canada has the potential to supply; a mineral essential to Canada’s economic success, including
those essential to cleantech, with potential threats to its supply; and a mineral essential to Canada’s national security,” says Boyland. Canada’s critical mineral list, released in 2021 by Natural Resources Canada, contains 31 minerals and metals. The list includes well-known materials such as aluminum, copper, nickel, potash, uranium and zinc, plus cobalt, lithium and rare earth elements, to name a few. Saskatchewan is the world’s
Saskatchewan is well-positioned to continue to be a leading supplier to the world.
largest potash producer (32 per cent of global production), the second-leading uranium producer (13 per cent) and has a long history of zinc production. Saskatchewan Minister of Energy and Resources Bronwyn Eyre says critical minerals are important for the future of the country’s mining industry and Saskatchewan has the potential to supply some of these commodities. “Saskatchewan is working its way through the periodic table,” says Eyre. “The government of Saskatchewan continues to support the exploration and development of several critical minerals, including lithium, helium, hydrogen, nickel, copper and rare earth elements such as cerium, lanthanum, praseodymium and neodymium. “Global demand for emerging elements, as well as traditional mining products such as potash and uranium, is expected to increase significantly over the coming decade,” she adds. “Saskatchewan is
well-positioned to continue to be a leading supplier to the world.” There are numerous exploration projects and a few development projects for critical minerals in the province, Eyre says. For example, the Saskatchewan Research Council is developing a $35 million rare earth elements processing plant in Saskatoon. This will be the first rare earth elements processing plant in Canada and is intended to establish a technology hub in the province. Another exciting development has been North American Helium’s $32 million helium purification facility in southwest Saskatchewan, which is expected to produce more than 50 million cubic feet per year of purified helium for commercial sale. Since 2017, helium prices have risen 160 per cent due to increased global demand and supply shortages, and Canada has the fifth-largest helium resource in the world, with significant underground reserves located in Saskatchewan. S E E M I N E R A L S O N B2
INSIDE PRICES
Commodity market remains strong B3
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Mines continue to take extra safety precautions B4 RESPONSIBLE FOCUS
Provincial firms leaders in good governance B7
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Saskatchewan's Critical Minerals: Essential to Global Supply Chains saskmining.ca @SaskMiningAssoc
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CRITICAL MINERALS
Demand set to grow over next decade M I N E R A L S F R O M B1
Prairie Lithium Corp. and LiEP Energy Ltd. have started the Prairie-LiEP Critical Mineral joint venture, a two-stage pilot project to produce lithium hydroxide from Saskatchewan oilfield brines. The first stage was started in 2020, and the second stage is planned for the second half of 2021. “Saskatchewan has the potential to be a global player in the production and chemical processing of lithium,” says Eyre, highlighting the recent announcement of record revenues from the province’s most recent subsurface mineral public offering in April. “It raised almost $2.5 million in revenue for the province and was the largest single sale since the province adopted the subsurface mineral public offering process in 2018. The highest bid received in this offering was for a 5,829.349-hectare block located east of Weyburn that is prospective for brine minerals such as lithium.” Boyland says demand for critical minerals is expected to grow over the next decade and beyond because they are essential to the global clean energy transition, as well as the movement to net-zero emissions. “Both the International Energy Agency and the World Bank have reported that the accelerated deployment of renewable energy and clean technology will be materially intensive, and will drive demand for critical minerals globally,” says Boyland. “The World Bank also estimates that to limit global warming to two degrees Celsius, global production of critical battery minerals like graphite, lithium and cobalt will need to increase by more than 450 per cent from 2018 levels by 2050 to meet increased demand for energy storage technologies.” He adds that the COVID-19 pandemic has also exposed the issue of supply chain security for key sectors of Canada’s national and regional economies. For these reasons, Canada’s allies, including the U.S., the European Union and Japan, are all working to diversify and protect their supply of critical minerals, metals and value-added products. For example, he says, the U.S. is looking to Canada as a strategic partner given our natural base, long history as a mining power and our world leading environmental, social and good governance credentials, which differentiates us from our competitors. “Canada already represents a secure and resilient source of minerals and metals imports to the U.S. and is currently an important supplier of 12 of the 35 minerals deemed critical by the U.S., with the potential to supply many more,” he says. Eyre says Saskatchewan is a recognized leader in mining in the world and is well positioned to supply the world with the critical minerals it needs. “The province’s mining sector is a significant driver of growth in the province’s economy. Our government welcomes all companies that wish to create jobs and economic opportunities in the province through the responsible development of our natural resources.”
JNE Welding manufactured this massive Mosaic Tank for the Belle Plaine mine site. The Saskatchewan company, 70 per cent of whose business is in the mining industry, employs almost 140 workers directly along with supporting many more jobs at other companies through its business. JNE WELDING
Mining industry central to strong provincial economy Directly employs more than 12,000 and twice as many in supply, service sectors PE T E R K E N T E R
Saskatchewan’s mining sector is an economic powerhouse, benefiting from the province’s rich endowment of natural resources, from potash and uranium to gold, copper, zinc, nickel, platinum and palladium. The mining sector, together with oil and gas, constitutes more than one quarter of the province’s gross domestic product. Mining directly employed 12,400 workers in 2017 and supported twice as many jobs in the province’s mining supply and service sector, where the industry purchased more than $2.9 billion in goods and services. The mining sector continues to be a major driver of employment in Saskatchewan’s construction sector. Even during the COVID-19 pandemic, both the mining and construction sectors continued to propel the province’s economy as essential services. “We build new infrastructure, maintain the existing and renovate old builds,” says Megan Jane, a spokesperson for the Saskatchewan Construction Association. “It’s a bit of a virtuous cycle, as building that mining infrastructure is critical to supporting Saskatchewan’s economic strength and attracting new investment, which further supports other key sectors and maintains the quality of life we’ve become accustomed to.” John Desjarlais is general man-
ager of Great Plains Contracting, a joint partnership that includes First Nations and operates primarily in southern Saskatchewan. Between 70 and 80 per cent of its revenue is derived from mining work, primarily industrial construction and maintenance. “We started in mining and the skills we developed allowed us to move into other areas, such as oil and gas,” he says. “The mining industry has sought a greater degree of Indigenous participation and we find them both engaging and flexible in the way they apply their procurement models. Mining has always been our biggest customer and we see it as the pillar on which we’re building our future business plans.” JNE Welding is 60 per cent First Nations-owned and roughly 70 per cent of its business is generated by mining activity. “The health of the mining industry is critically important to our company,” says Adam Logue, chief executive officer of JNE. “We build everything from piping, vessels and tanks to chutes and structural fabrications. Working for the potash industry, we’ve developed world-class specialties in welding with specialized alloys that are resistant to corrosion.” The company not only employs almost 140 workers, but it also drives economic activity for engineers, painters, insulators and steel suppliers.
“The trickle-down effects are enormous,” Logue says. “And while we might say that the mining industry is responsible for 70 per cent of our current activity, it’s responsible for 100 per cent of what we do. So many of the skills we developed are highly transferable to other industries.” Cameco Corporation, the world’s largest publicly traded uranium mining company, is proudly rooted in Saskatchewan. The company is committed to creating local em-
... While we might say that the mining industry is responsible for 70 per cent of our current activity, it’s responsible for 100 per cent of what we do. ployment opportunities and using local suppliers. Kari Krueckl Lamont, director, procurement, contracts and materials management with Cameco, notes that the company favours procurement with northern Saskatchewan suppliers and with businesses located in the communities in which the company operates, totalling 85 per cent of the company’s service spend. Cameco’s procurement hierarchy
further prioritizes Saskatchewan suppliers. “All of our large-spend services come from Saskatchewan,” she says. But it’s more than goodwill. Lamont notes that the company relies on the robust capabilities of local suppliers to maintain Cameco’s exacting production schedules. “Whether its recoiling a motor, sourcing a critical part or piece of equipment, or simply ordering consumables, we like to have our suppliers close by,” she says. Athabasca Basin Development was established in 2002 to build and invest in successful businesses in the region. Chief executive officer Geoff Gay notes that Athabasca began its mission providing services to the uranium mining and exploration industry. It now counts 13 investments in various sectors in its portfolio. Six companies continue to provide services to the mining industry, including industrial security, drilling, aviation, camp services and construction. One of its investments helped launch Team Drilling in 2008. It now provides drilling services to clients in five provinces. “Athabasca Basin Security was founded in 2002 and now provides industrial security services to many of the mining industry’s top companies in B.C., Alberta, and Saskatchewan,” says Gay of another company. “It now has over 300 employees, and has established partnerships with 14 First Nations, and local employment at its northern sites remains steady at nearly 100 per cent.” As Saskatchewan emerges from the pandemic, JNE’s Logue notes that mining will continue to be a driving force of economic recovery. “We talk about seeing the light at the end of the tunnel following the pandemic,” he says. “For us, the light at the end of that tunnel is a mine.”
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SASKATCHEWAN MINING REPORT
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Outlook for commodity prices stays strong But economists do not believe we are entering supercycle B RU C E J O H N S T O N E
The price of everything — from base and precious metals to building materials and agricultural commodities — seems to be going through the roof these days. The S&P Global Commodity Index, which tracks the prices of 24 raw materials, was up 24 per cent in 2021. Copper hit US$10,000 per tonne in April for the first time in a decade. Corn prices recently hit an eight-year high of US$7 per bushel. Rare earth elements used in catalytic converters are so sought after that thieves are cutting them out of vehicles and selling them on the black market. So, we are on an upward trajectory in commodity prices that could last a decade or more — in other words, a commodities supercycle, right? Not so fast, says Caroline Bain, chief commodities economist with Capital Economics. Bain believes there are big differences between the last supercycle from 2000-14 and the current commodity price boom. “What’s missing at the moment is a big structural change in demand,’’ Bain says in an interview from London. In 2000, China was in the early days of a massive rebuilding project that would generate long-term structural demand for commodities. “We don’t really see a new source of demand that’s big enough to create another supercycle,” Bain says. Another difference between the last supercycle and today is the devastating, but temporary, nature of the pandemic, which generated shortages, price spikes and supply interruptions and provoked massive fiscal stimulus in response. “What we’ve got now is an upturn in prices driven by temporary
An interior view of the storage warehouse is seen at Nutrien’s Cory potash mine near Saskatoon. Economists are optimistic about prices in 2021. NAYAN S THANKIYA /R EUT ER S FILES
The mega-trends for the potash industry, such as the constantly growing world population, for example, continue to be intact. But there will be ups and downs. monetary and fiscal policy, and those policies are gradually being withdrawn,’’ Bain says. Finally, she says the move toward a net-zero economy will not support sustained high commodity prices. “We don’t think the rollout of the green economy is going to be sufficient to offset the slowdown in China. And, obviously, it’s not good for oil and gas or coal.”
Bain expects this commodity price boost to be one or two years in duration (similar to 2009-10) and not as broad-based, sharp and sustained as the 2000-14 supercycle. “It won’t be a lifting-all-boats commodities supercycle,’’ Bain says. So where does that leave Saskatchewan’s mining sector, which is heavily weighted toward potash and uranium production? As the ‘new kid on the block’ in Saskatchewan’s potash industry, K+S Potash Canada’s Bethune solution mine has only been producing potash since 2017. But its parent company, K+S AG, has been mining potash in Europe for more than 125 years. “We are optimistic for 2021 and forecast a further rise in potash prices this year,” says Michael Wudonig, head of corporate communications for K+S in Kassel, Germany. “On average, demand for potash fertilizers should grow by about two per cent per year.” Longer-term, K+S is confident
that potash demand will continue to grow with the global population and increasing demand for agricultural products. “The mega-trends for the potash industry, such as the constantly growing world population, for example, continue to be intact,” Wudonig says. “But there will be ups and downs.” Roger Lemaitre, president and CEO of UEX Corporation, a Vancouver-based junior mining company active in Saskatchewan, says uranium prices have been frozen since the Fukushima nuclear disaster of 2011 when a major earthquake sparked a tsunami that led to a large nuclear accident. “We’ve seen a decade of real pain in the market, post-Fukushima.” But, with projections of 25 per cent growth in nuclear energy over the next 10 years, uranium prices are poised to emerge from their deep freeze, he says. “It’s a sea change in our industry. People are talking about the importance of nuclear power as a car-
bon-free source of baseload electricity,’’ Lemaitre explains. “Things are definitely looking better than they’ve been in the past decade.” As president of the Saskatchewan Mining Association, Pam Schwann says the mood of the mining industry in the province is “generally positive.” But she’s not sensing that the industry is riding a commodity price supercycle. “I don’t think it’s a supercycle for potash and uranium. With potash and uranium, we’ve got latent capacity.” But the long-term trends look good for potash and uranium, she adds. With global population expected to reach 10 billion by the end of the century, crop production has to increase by 70 per cent. “That’s not going to happen without fertilizer,’’ Schwann says. Similarly, clean, carbon-free, baseload power is going to be needed in densely populated areas of the world. Nuclear energy can help supply that clean power, she says.
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SASKATCHEWAN MINING REPORT
S A S K AT O O N S TA R P H O E N I X
Mine operations adopt latest safety protocols Some, like fly-in, fly-out locations, taking extra precautions in unique situations ELIZABETH IRELAND
Mining companies with operations in Saskatchewan are taking a team approach when it comes to handling the ongoing COVID-19 pandemic. Companies are working in partnership with the Saskatchewan Health Authority and local communities to go above and beyond when it comes to safety protocols. Actions taken include the installation of barriers to enhance physical distancing, increased disinfecting and cleaning, and asking office staff to work from home and take meetings virtually, when possible. For employees who remain on-site, there are heightened controls in shared spaces, with the implementation of staggered meal and break times. Uranium miner Cameco Corporation reopened its Cigar Lake mine in April after shutting it down for four months over concerns about COVID-19, says Jeff Hryhoriw, director of government relations and communications. “Cameco will continue to follow all government requirements, consult closely with public health authorities and dialogue with northern community leaders as we implement our restart plan at Cigar Lake,” says Hryhoriw. “We recognize the situation around the pandemic remains fluid and will closely monitor ongoing developments, such as COVID-19 case counts and the progress of vaccinations. Worker health and safety is our top priority, and if we feel our ability to operate safely is at all compromised, we won’t hes-
itate to take further action.” Due to the fly-in, fly-out nature of its northern mines, Cameco has many precautions in place. These include increased sanitization at flight pickup points and in the aircraft; mandatory medical-grade masks worn across all northern operations; employee screening and temperature checks; spaced seating in all common areas at site and at the airport; and employee capacity limits in vehicles and conveyances up and down the mine shaft. “We also worked with the SHA to set up licensed labs at Cigar Lake and Key Lake to conduct COVID-19 testing for all of our northern sites, enhancing the safe operating environment. We’re ensuring our practices align with the latest requirements from government and public health authorities, and continually updating these measures as circumstances warrant,” adds Hryhoriw. When the pandemic began, governments around the world declared crop nutrients an essential service. Ken Seitz, Nutrien’s executive vice-president and CEO of potash, says the company, which operates six potash mines in Saskatchewan, is proud of “playing our part in the food security story. Our operations folks are the best in the world.” Nutrien has implemented masking, social distancing and screening protocols during the pandemic. As well, only essential employees are located at the mines. As a result, hundreds of employees in Saskatchewan are “for all intents, working from home.”
I believe the enduring legacy of COVID-19 is an increased focus on food security and the memory of the eerie feeling of empty supermarket shelves ... Nutrien also limited travel between its mining sites and the company deferred the capital work that was planned for 2020-21 to avoid introducing new people, and potential infections, to its sites. Nutrien is also using proximity monitoring and contact trac-
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Nutrien employees have been wearing proximity monitors called Proximity Trace from Triax Technologies, as a tool to help combat the spread of COVID-19 by ensuring distance between people is maintained. NUT R IEN
ing technology, called Proximity Trace from Triax Technologies, as a tool to help combat the spread of COVID-19. Badges with unique identification are attached to employees’ clothing or hard hats and produce an alert when employees come within six feet of each other. In Saskatchewan, Proximity Trace is in the pilot phase at Nutrien’s Vanscoy potash mine. In terms of potash demand, “it’s green lights for the global markets and demand is growing. It’s good news for the province. We have seen some depletion of inventories. I believe the enduring legacy of COVID-19 is an increased focus on food security and the memory of the eerie feeling of empty supermarket shelves that we saw at the beginning of the pandemic,” says Seitz.
Brad Sigurdson, vice-president of environment, safety and regulatory affairs at the Saskatchewan Mining Association, says the group has been active in providing guidance to its 35 member companies, including producers and exploration companies. Since March 2020, the association’s 15-member Industrial Hygiene Focus Group has met weekly or bi-weekly to stay on top of the latest information from the Saskatchewan Health Association. The group, which met on a quarterly basis before COVID-19, is also following the latest best practices from around the world about mining during a pandemic. “There is a fair amount of optimism now, with vaccine rollouts and the Re-Open Saskatchewan plan,” Sigurdson concludes.
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SASKATCHEWAN MINING REPORT
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Potash mines look at ways to cut costs Firms challenged by taxes, transport B R I A N BU RT O N
Canada could get more out of its potash industries by taking less in taxes and royalties, especially as global competitors open new mines and push more product onto world markets, say producers. In the ruthless calculus of commodity markets, brand names, quality and environmental performance are frequently discounted, price decides market share and the lowest-total-cost producer is king. Facing higher government royalties and taxes and, in the case of potash, the unavoidable high cost of rail-freighting product some 2,000 kilometres to tidewater, Canadian potash mining companies landlocked in Saskatchewan must keep a lid on costs to compete in global markets. Those global markets are vital. Saskatchewan holds the world’s largest potash reserves and produces some 20 million tonnes annually, which is vastly more
K3 is very much about global competitiveness and it will help lower costs ... than Canada can use. As a result, Saskatchewan potash producers export 95 per cent of their output. “Sometimes, I think that global perspective is missing,” says Mosaic spokesman Tyler Hopson, referring to when governments propose higher taxes and more costly environmental standards. A new potash industry website, called Time to Dig Deeper (timetodigdeeper.com), laments that, “Canadian potash is laden with the highest royalties and production taxes in the world. It is estimated Russian potash producers pay 43 per cent less taxes on operating earnings than a company mining Canadian potash, and these burdens are starting to influence business decisions,” the website says. Hopson says he’s concerned that impending new federal initiatives, including environmental requirements of Bill C-69 and rising carbon taxes on fuels, will further add to the cost disadvantages of Canadian potash producers.
Mosaic is nearing completion of its K3 potash mine in Esterhazy, shown here during construction in 2017. The new mine will operate more efficiently than the K1 and K2 mines, which are scheduled to close, allowing Mosaic to compete on the world market. T ROY FLEE CE FILES
Certainly, he says, the industry has an obligation to do its utmost to contain internal production costs that are within its control. But he says government burden and the costs of long-distance rail shipments are major issues. He notes that Russian potash is now arriving in the United States at lower transportation costs than product from Saskatchewan. For potash producers worldwide, an essential part of the cost-containment battle is the development of new, bigger mines with larger reserves and output, more advanced technologies and lower costs per tonne of production. Underscoring this trend, Mosaic is nearing completion of its K3 mine, a $3-billion-plus project that will be the world’s largest potash mine. “K3 is very much about global competitiveness and it will help lower costs, overall,” Hopson says. At peak production, K3’s expected output is seven million tonnes per year. But Hopson says this won’t constitute added volume and price pressure on world markets because Mosaic is closing the older, less efficient K1 and K2 mines with combined capacity of 8.5 million tonnes. The net effect for Mosaic will be reduced capacity — but at significantly lower cost per tonne, leaving more room for increased margins. That’s important when you consider that Canada’s 39 per cent share of world potash markets amounts to about 20 million tonnes per year and that its two largest producers, Mosaic and Nutrien, each have Canadian production capacities of about 20 million tonnes.
Sask. now Canada’s best bet for investment, executives say PAT R E D I G E R
Saskatchewan leads the country as its most attractive jurisdiction for mining investment, according to research conducted by the Fraser Institute. The Canadian public policy think-tank released its 2020 Annual Survey of Mining Companies earlier this year, which indicated that Saskatchewan is third in the world as the best place to invest in the mining sector. Quebec is the second most attractive jurisdiction in Canada, followed by Newfoundland and Labrador. Jairo Yunis, a junior policy analyst, says the Fraser Institute began conducting an annual global survey of people in mining and exploration companies in 1997. The most recent report included the findings from 2,200 surveys that were distributed electronically between Aug. 6 and Nov. 6, 2020. In total, 276 responses were received from 77 jurisdictions, says Yunis. Survey responses were tallied to rank provinces, states and countries according to the extent that public policy factors encourage or discourage mining investments. “We closely looked at 15 different policies and asked mining investors from around the world to rank
them,” says Yunis. Top executives stated that they consider tax systems, labour markets and political stability while deciding which areas are more worthy of investments. The top jurisdiction in the world, according to the survey, is Nevada, which moved from third in 2019 to the top spot in 2020. Coming in sec-
Bronwyn Eyre
ond was Arizona, which was rated ninth the previous year. Saskatchewan climbed from the 11th spot in 2019 to third in 2020. “Saskatchewan as a province has had large policy improvements and investors see geological potential and overall improvement in mineral potential,” says Yunis. “They have become an attractive province due to their competitive policy investment as well.” Bronwyn Eyre, Saskatchewan’s Minister of Energy and Resources,
says the province’s rise in the rankings can be attributed to its sound, predictable regulatory regimes and competitive fiscal policies. “Saskatchewan has a globally recognized mining sector, workforce and culture,” she says. “It offers competitive regulatory, royalty systems and incentives that promote mining exploration, development and diversification. We also have some of the most extensive mineral research labs in the world, as well as internationally renowned geoscience and exploration opportunities.” She adds that Saskatchewan has seen investment in a range of projects in the past few years. These projects range from junior Canadian companies to large global players such as Rio Tinto and BHP. These companies are investing in projects involving potash, uranium, diamonds, gold and base metals as well as emerging elements such as helium, lithium and rare earth elements. Eyre says she was particularly pleased to see that Foran Mining Corporation announced on Earth Day that it was developing the world’s first carbon neutral copper development in the province. On the other end of the spectrum, Yunis says Ontario and British Columbia are seen by mining experts as the worst provinces to invest in.
MEM-21-004
Photo taken pre-COVID-19.
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SASKATCHEWAN MINING REPORT
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A technician collects water samples for analysis at Key Lake as part of Cameco’s ongoing environmental management and stewardship commitments.
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CAME CO COR P.
THE ESG APPROACH Saskatchewan firms are leaders in environmental, social and corporate governance B RU C E J O H N S T O N E
When it comes to social responsibility in mining, Canada is a world leader, putting protection of the environment, workers, local communities and the public interest first and foremost. This focus on environmental, social and corporate governance, known as ESG, can roughly be tracked back to 1994 when federal and provincial mines ministers created the Whitehorse Mining Initiative, with input from the mining industry, environmentalists, Indigenous Peoples and community groups. In response, the Mining Association of Canada launched the Towards Sustainable Mining (TSM) program in 2004, with four protocols covering tailings management, crisis management, external outreach and energy and greenhouse gas emissions management. Since then, it has been expanded to include biodiversity conservation management, safety and health. It has won several awards and launched its own excellence awards program. More importantly, TSM has won acceptance as the standard for sustainable mining practices in countries around the world, including Finland, Argentina, Botswana, Philippines, Spain, Brazil and Norway. “(TSM) was born out of the recognition that the industry had to pull up its socks and improve how it operated,’’ says Pierre Gratton, president and CEO of the Mining Association of Canada. “We did have a reputational problem and it wasn’t going to be solved simply through an ad campaign. We needed to actually be better at what we were doing.’’ A key component of the TSM program is the Community of Interest advisory panel, a multi-stakeholder group that fosters dialogue, improves industry performance and oversees the TSM process. “That is a central pillar of TSM,’’
We made the decision to no longer build a company town around the mine. We flew the (employees) in so they could live in their home communities ... and they spend their money in their home communities. TIM GITZEL, president and CEO, Cameco Corp.
Gratton says. “It underpins everything. Even the other areas — biodiversity, energy — they all have a communities lens. What do communities think? Have you consulted with them? That’s hardwired into TSM.” Indigenous involvement is another important part of the Community of Interest advisory panel, as Indigenous people are frequently impacted by mining
developments in terms of the environment, employment opportunities and social change. Gratton points to Cameco Corp., the Saskatoon-based uranium mining giant, as an exemplar of TSM practices and protocols, particularly with respect to Indigenous relations, employment and community involvement. He cited Cameco’s participation in the Community-Based Environmental Monitoring Program, an agreement between Cameco, Orano Canada Inc., three First Nations and four municipalities, which ensures that locally sourced food and water remain safe to consume. Cameco won a TSM Community Engagement Excellence Award in 2020 for its environmental monitoring program. “Cameco has long been a leader in the area of Indigenous employment and training and relationships,’’ Gratton says. Tim Gitzel, president and CEO of Cameco, says sustainable development and ESG have been part of Cameco’s DNA since the company’s formation in the 1970s. Gitzel, who worked for Cameco’s predecessor company as a summer student in the late 1970s, says the then-NDP government’s directions for mining development in Saskatchewan were clear and direct. “You’re going to have to look after the environment. You’re going to have to look after the local community and give opportunities to local business. Health and safety are going to have to be top of mind.’’ Gitzel says Cameco also learned from past mistakes, like when Uranium City was abandoned after the Eldorado Resources uranium mine shut down in 1982, leaving behind thousands of unemployed people and hundreds of vacant buildings. “We made the decision to no longer build a company town around the mine. We flew the (employees)
in so they could live in their home communities — work one week in, one week out, or two weeks in, two weeks out — and they spend their money in their home communities.’’ Gitzel says Cameco is particularly proud of its record in training and employing Indigenous people and northerners. “We’re over 50 per cent Indigenous and northern employees in our operations. We’ve been the largest industrial employer of Indigenous people in the country.” And Cameco uses the same approach to mining wherever the company operates. “That’s where ESG is really important. The values are applied whether you’re in Saskatchewan or Kazakhstan.” Of course, Cameco isn’t the only mining company in Saskatchewan that takes its environmental, social and corporate governance responsibilities seriously. Mosaic Company, which operates potash mines in Esterhazy, Belle Plaine and Colonsay, has a long track record of sustainable mining operations in North America and elsewhere in the world. While not a member of the Mining Association of Canada and therefore not an adherent of TSM, the company is a member of Fertilizer Canada and the Saskatchewan Mining Association and has its own sustainable mining program. Like Cameco, Mosaic’s commit-
ment to sustainable mining has been around for years, says Jessica Theriault, Regina-based Mosaic Potash’s director of public affairs. “Mosaic has been publicly disclosing our sustainability framework starting from 2009,” says Theriault, who’s also an environmental engineer. “In 2015, we released quantifiable ESG targets around water, energy and greenhouse gases. In 2018, we aligned those targets to the UN’s six sustainability goals.” In June 2020, the 2015 targets were replaced with 13 ESG performance targets for 2025. “Our (2025) targets are more broadly focused on the ESG performance areas, so around people, environment, society and company. We still have the traditional targets around water (usage) and GHG (emissions) of 20 per cent per tonne (of product) reduction by 2025. That’s a goal we’ve set globally across the company.” In fact, Mosaic has been able to reduce its GHG emissions intensity to 50 per cent of the industry average across the world. Theriault credits optimizing energy efficiency in design and production for reducing Mosaic’s energy consumption and GHG emissions. “We’re extremely proud of the success that we’ve had in all of those (ESG) elements. And we’re acknowledging there’s more work to do, too,’ ” says Theriault. “We know it’s the right thing to do.”
2021 Board of Directors Vice Chair: Nathaniel Huckabay Westmoreland Mining Holdings LLC
Larry Long, SMA Chair Senior Vice President Operations, Potash Nutrien Ltd.
Janelle Appleyard, Nutrien Ltd. Leon Boehm, Nutrien Ltd. Troy Boisjoli, NexGen Energy Ltd. Andrew Gajadhar, K+S Potash Canada GP Iain Guille, SSR Mining Peter Haugen, The Mosaic Company Guy Hiltz, Westmoreland Mining Holdings LLC Rob Jackson, Nutrien Ltd. Dustin Maksymchuk, The Mosaic Company Scott McHardy, Cameco Corporation Liam Mooney, Cameco Corporation Jessica Theriault, The Mosaic Company Tammy Van Lambalgen, Orano Canada Alice Wong, Cameco Corporation
Innovations That Matter to Mining December 2021 www.imii.ca/initiatives/demoday/
saskmining.ca @SaskMiningAssoc
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SASKATCHEWAN MINING REPORT
S A S K AT O O N S TA R P H O E N I X
Keeping impact in SK Did you know that every dollar spent with local Saskatchewan suppliers generates nearly four times more economic output for the province than the same amount spent with out-of-province suppliers? 1 In a time of much-needed stimulus spending, maximizing local impact is critical. As the only Association that represents the voice of Saskatchewan Suppliers – and only Saskatchewan suppliers – SIMSA members help keep stimulus money and its impact close to home. Learn more at https://simsa.ca/letter
What one procurement dollar means to Saskatchewan:1 When spent with an out-of-province supplier
When spent with an in-province supplier
Economic output
$ 0.39
$ 1.51
GDP
$ 0.56
$ 0.86
Labour income
$ 0.23
$ 0.34
Taxes
$ 0.12
$ 0.18
1
Source: The economic impact of local resource suppliers in Saskatchewan, PWC (2019)
www.simsa.ca
Food is Essential Canpotex is proud to deliver high-quality Saskatchewan potash to over 40 countries around the world. Our potash allows producers to grow more food for the world’s growing population.