T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE
On January 2 of this year, the merger between PotashCorp and Agrium became official and Nutrien Ltd. was launched. Nutrien is now the world’s largest fertilizer company. PH OTO: N U TRI E N / L AN I G AN D I VI S I ON
Overseas demand driving record sales of Saskatchewan potash BY JONATHAN HAMELIN
In Saskatchewan, potash continues to be the fuel for success. Saskatchewan is home to the largest and richest potash resource in the world and the province’s potash industry accounts for approximately 30 per cent of world production. In 2017, there were record sales of $4.8 billion – up 11 per cent from 2016 – and the Government of Saskatchewan is expecting the 2018 numbers will also be record-breaking due to continued growth in overseas demand. “Demand for Saskatchewan potash has never been stronger,” said Saskatchewan Minister of Energy and Resources Bronwyn Eyre. “Potash prices, although still well below the highs experienced several years ago, have slowly recovered, which is also driving renewed interest in potential new potash construction. In addition to the 10 facilities operating in the province, there are many other projects at various stages of evaluation.” She added that “the long-term prospects are excellent for the Saskatchewan potash industry. Higher population growth, combined with growing world income levels and increased biofuel consumption, indicates that the global demand for potash will increase over the long term.” One of the big stories this year centred on the merger of PotashCorp and Agrium to form Nutrien, based in Saskatoon. Nutrien rebounded from a minor first-quarter loss to post net earnings from continuing operations of $741 million and earnings before interest, tax, depreciation and amortization of $1.5 billion in the second quarter. There has also been big news surrounding Gensource’s Vanguard One project in central Saskatchewan. On August 9, 2018, it was announced that Gensource successfully completed the environmental assessment process through the Saskatchewan Ministry of
Environment and was not required to complete a full environmental impact assessment. On October 4, 2018, Gensource had executed an agreement to lock up the plant site location for the project, which allows the company to continue moving forward to construction. Western Potash Corp is another company eyeing future construction – as early as 2019 – on the Milestone Phase I Potash Project located 35 kilometres southeast of Regina. The company announced in July that it had successfully developed a groundwater supply source that can fully support the water requirements for the project. In November 2019, the joint project between Encanto Potash Corp. and Muskowekwan First Nation in southeast Saskatchewan could also begin construction. On July 23, the partnership announced that it had received Government of Canada funding to support the upcoming engineering steps. Looking a bit further into the future, the Mosaic Company is expecting to complete construction of its multibillion dollar K3 potash project in Esterhazy in 2024. The K3 production shafts are the first to be sunk in the province in nearly 50 years, reaching potash at 3,350 feet below the surface. Upon completion of K3, Mosaic’s Esterhazy operation is expected to be the largest, most competitive underground potash mine in the world. BHP Billiton’s Jansen project is ongoing and is the most advanced potash project in the province. Jansen has the potential of being the largest potash mine in the world once fully developed. Earlier in 2018, BHP announced its two shafts had reached potash deposits almost a kilometer deep below ground. Eyre noted that the continued progress of potash projects in Saskatchewan bodes well for the future. At current rates of production, Saskatchewan could supply the world’s potash needs for several hundred years.
Saskatchewan Minister of Energy and Resources Bronwyn Eyre S U PPLI E D PH OTO
“With the major expansions at existing mines by Nutrien and Mosaic, the new Bethune mine constructed by K+S, and continued interest in potential new mine development by many international companies, the Saskatchewan potash industry is well positioned to be the world’s largest potash producer well into the future,” she said. And this success, Eyre explained, is something everyone in Saskatchewan can celebrate. She said the Saskatchewan potash industry is “a major economic driver to the provincial economy.” Since 2006, over $20 billion has been dedicated to the expansion of existing mines and new mine development, while there are over 5,000 employees currently employed at mine sites and thousands more who depend on the potash industry for their livelihood. In addition to employment, Eyre said the potash industry provides hundreds of millions of dollars annually in direct taxes and royalties to the Government of Saskatchewan – which she said supports hospitals, schools, highways and infrastructure across the province.
The Mosaic Company is expecting to complete construction of its multibillion dollar K3 potash project in Esterhazy in 2024. Upon completion of K3, Mosaic’s Esterhazy operation is expected to be the largest, most competitive underground potash mine in the world. SUP P LIED P HOT O Eyre said the government is working hard to ensure these benefits continue to be realized by promoting the industry at national and international mining events, regularly meeting with companies interested in investing in the potash sector, ensuring regulations are clear and transparent and investing in geological information that assists companies in making investment decisions. She said the Government of Saskatchewan regularly reviews potash royalties and taxation to ensure that the province remains competitive in attracting new investment. “The Potash Production Tax (PPT) includes several incentives to encourage continued growth in the industry and a simplified Potash Crown Royalty was introduced in 2017,” she said. “The incentives in the PPT have been largely credited with the expansion of the industry over the past decade.” On the part of potash companies, striving to be innovative is a key in ensuring success moving forward. Eyre said the province’s potash industry has always been driven by innovation. She
notes that the Blairmore Ring, which allows companies to successfully construct mine shafts through waterbearing ground and gain access to the potash resource, was a primary driver in unlocking Saskatchewan’s potash potential. “Today, companies continue to evaluate and invest in new technologies to make their operations more efficient, profitable, environmentally responsible and safe,” she said. “Some examples of this are the increased use of remote control technology for underground mining equipment and secondary solution mining. “Members of the existing industry are not the only companies employing innovative techniques. Some of the potential new potash miners in Saskatchewan are planning to use solution mining techniques that involve horizontal drilling to develop mines on a much smaller scale than in existing mines. According to the companies, this can be done efficiently and may actually reduce the environmental footprint by bringing less salt to the surface.”
THIS SECTION WAS CREATED BY CONTENT WORKS, POSTMEDIA’S COMMERCIAL CONTENT DIVISION.
CANADA IS HELPING FEED THE WORLD
Our farmlands supply agri-food products that are delivered worldwide and Saskatchewan Potash Producers are key to supplying the fertilizer supporting this effort. Saskatchewan Potash Producers Association 10125032-01_1_1
T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE
Nutrien Ltd. was created through the merger of PotashCorp and Agrium. Nutrien operates six potash mines in Saskatchewan, as well as 1,500 farm retail centres. The mega-company is the largest employer in Saskatchewan. PH OTO: N U TRI E N /AL LAN MI NE
Balanced growth key to future for Nutrien BY PAUL SINKEWICZ
I n t h e l a s t ye a r, Saskatchewan’s potash industry has experienced a dramatic sea-change. Helping to lead that transition is Susan Jones.
Jones is the newly appointed Executive Vice-President, and President of Potash, for Nutrien, the massive crop input company created from the merger of PotashCorp and Calgary-based Agrium. The mega-merger became official earlier this year, and created a company with 1,500 farm retail centres, nearly 20,000 employees and six potash mines in Saskatchewan. The shakeout of redundant head office positions, and questions about the location of the head office, had contributed to unease in the province. Since her arrival in May, Jones has gotten a strong sense of the possessiveness people feel about the former PotashCorp, formerly a Crown corporation before being privatized in 1989. It enjoyed the goodwill engendered by its ubiquitous presence on banners and plaques as a financial supporter in countless communities. “We are the largest employer in the province. We contribute a significant amount to the GDP of the province, but beyond just the numbers, clearly PotashCorp over the years established real close connections with the community,” Jones said. “And whether it’s people who have grown up on farms, or whether it’s people who have cousins, or friends, or uncles and aunts who have either worked in the potash mines or worked at the company, I understand why there’s possessiveness of it, because it’s part of who the province is. And there is pride in what’s been created over the years.” While CEO Chuck Magro will headquarter in Calgary, Jones is looking forward to moving the Saskatoon office to Nutrien Tower, now under construction in River Landing. When complete, the 18-storey glass tower will be the province’s tallest office building, and Nutrien will inhabit eight floors, giving it room to grow. There have been lots of discussions about the future of the new company in the province, and editorials and guest columns in newspapers bemoaning the fact the head office of the combined company will be in Calgary. But Jones sees the firm’s commitment to the province only deepening. “From my perspective, speaking on behalf of our executive leadership, we are absolutely committed to this province,” said Jones. “Everything, from the employees that are here, to the community engagement and involvement
we’ve got going on. And it’s not obviously just dollars, but it’s actual real value that we’re putting into community.” Jones said Saskatchewan people have very openly accepted the new name and identity, probably in large part because of the company’s continuing commitment to investing in the province. “This year we’ve put $4.5 million into the community,” said Jones. “On a calendar year basis, we touch over 200 organizations.” While the outreach and community engagement work started by PotashCorp will continue, a new era will really dawn in earnest next year when the Saskatchewan headquarters moves. “I’m super excited about our new office building in River Landing. I think it’s going to change the landscape.” Jones says people will come to realize that what the merger has done is create a leader in the agricultural space globally. “It’s a Canadian champion in the industry, which is exciting,” she said. “We know that by 2050 we’re going to have almost 10 billion people to feed. What does that mean for a company of our size? We have the cashflow to put into technology to help farmers increase yield, to help developing countries grow food and actually help with balanced fertilization. “It’s a pretty exciting company to be a part of and it’s a pretty exciting space to be a part of. I think there’s lots of change going on in agriculture, and we’re now in a position as a leading agricultural company to actually lead that change and impact food as it’s grown globally.” The future of Nutrien looks bright, says Jones. She will be working hard to make sure that future includes even growth and predictable supply management. Right now, she is seeing the potash market in a state of recovery, with demand growth of four to five per cent over the past few years. “What we’re expecting in the coming medium- to longer-term is 2.5 to three per cent growth. And that’s predominantly coming from China, India, Brazil and other parts of Asia. “The good news for us is that we have excess capacity with Nutrien to move product into the market as the demand increases, and also to really utilize our retail network to help grow that demand and help pull it through the retail channel to the ultimate grower.” New potash producing projects in Russia and Saskatchewan have not come on stream as quickly as expected, and when they do, she expects them to do so gradually. “I think there’s an expectation by a lot of people that they just come on full force into the market, but that’s not how they are brought into production.”
“We are absolutely committed to this province,” says Susan Jones, who was recently appointed Nutrien Executive Vice-President and President of Potash. P HOT O: NUT R IEN
In August, Nutrien reduced staffing at its Vancoy potash mine to increase efficiency, but announced it expected to increase staffing at other mines going forward. Jones fully expects to see demand growth continue, and Nutrien wants to ensure that it is meeting demand without spikes and valleys in the market. “It’s not helpful for our employees, it’s not helpful for farmers, and it’s certainly not helpful for the province. We want to have even growth and make sure we’re operating our assets safely and reliably and are actually meeting the demand that’s out there. So, I do feel positive, I would just say it’s a recovery, it’s not a spike and it shouldn’t be a spike.”
The Rocanville mine is one of six potash mines operated in Saskatchewan by Nutrien Ltd. SUP P LIED P HOT O
NRT’s fleet of highly trained professionals can be counted on to navigate high gross equipment across a vast and challenging terrain, such as gravel roads, in a safe and timely manner.
Civil • Geotechnical • Materials • Environmental
Proudly Supporting Saskatchewan’s Potash Industry for 40 Years
P O TA S H I N O U R P R O V I N C E ADVERTISEMENT
Celebrating the past, growing our future Although Nutrien is a new name, the company has contributed to the lives of Saskatchewan residents for over six decades. The province possesses some of the world’s largest potash deposits in the world and in 1958, Nutrien’s Patience Lake mine made history as the first potash producer in Canada. The location also pioneered some of the methods used in the new and growing potash mining industry in Saskatchewan, and paved the way for other mines to develop safe and effective best practices. Patience Lake was the first mine to use the ground freezing method during shaft sinking to allow quick access to the potash beds. After about 30 years of mining, the site came up with an innovative and cuttingedge alternative to conventional mining and converted the operation to a solution potash mine due to water inflow. In this method, heated water is pumped underground and the resulting brine solution is brought up to the surface for processing to recover the potash. The Patience Lake mine has continued to safely and efficiently extract potash in this manner since 1987. Patience Lake’s white granular potash goes primarily to the United States, where customers use white over red potash to differentiate themselves in their local
In 1958, Nutrien’s Patience Lake mine made history as the first potash producer in Canada. Patience Lake was the first mine to use the ground freezing method during shaft sinking to allow quick access to the potash beds. In 1987, the mine was converted to a solution potash mine and has continued to extract potash in this manner since then. (PHOT O: NUT R IEN)
market. The potash is used mainly for dry application, or melted down and used in liquid fertilizers or in fertigation. “The Patience Lake employees and I are honoured to be part of Saskatchewan’s history as we celebrate our 60th anniversary,” says Rob King, General Superintendent of the facility. “We’re proud to still be contributing to our home province in this unique way, even after all these years.” Nutrien’s Allan, Cory and Lanigan potash mines are also celebrating significant anniversaries this year. The three locations have been operating for 50 years. “We are very proud of our Saskatchewan roots and these anniversaries offer an opportunity to reflect on
(P HOT O: NUT R IEN)
our rich history, accomplishments and key learnings,” says Susan Jones, Nutrien Executive Vice President and President, Potash. “We also look forward to continuing to grow our business and supporting the vibrant communities in our province.”
GROWING RESPONSIBLY FOR A BETTER WORLD From those humble beginnings in 1958, Nutrien has become the world’s largest potash producer with over 18 million tonnes of operational capacity at its six mines in Saskatchewan. With decades of highquality reserves, the company is well positioned to meet the world’s long-term potash needs. Nutrien is a major contributor to the entire Sas-
This photo shows drilling operations at Palmer Rig 1, from 1954.
This photo shows the dismantling of Palmer No. 2 rig after completion of freeze-hole drilling in 1955. ( P HOT O: NUT R IEN)
katchewan economy. As the largest private-sector employer in the province, the organization has over 4,000 employees at six potash mines, more than 120 retail locations, and offices. In addition, the company
helps cultivate Saskatchewan’s culture and communities, donating more than $4.5 million to about 200 different organizations in the province since the beginning of the year, supporting health, education, culture and food solutions.
FEEDING THE FUTURE Nutrien is up for the challenge of helping to sustainably feed almost 10 billion people around the globe by the year 2050. “We have a real opportunity to shape and advance the agricultural industry; to leave a strong and positive legacy on how food is grown in Canada and around the world,” Jones says. “As we reflect on the innovative thinkers of the past, we’re confident about our safe and effective approach for the future.” Together with more than 20,000 employees across 14 countries, Nutrien is as committed to growing our world from the ground up as we were in 1958. To l ea r n mo r e , vi si t nutrien.com.
THIS STORY WAS PROVIDED BY NUTRIEN FOR COMMERCIAL PURPOSES. 10115652-01_1_1
Proud Community Members At Nutrien, we’re working to help farmers around the world produce enough food for a growing population. Together, we’re feeding the future.
Patience Lake Potash
Allan Potash Cory Potash Lanigan Potash
T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE Mosaic advancing food security, at home and around the world
Mosaic supports local food programs not just through monetary donations, but also with people power. Volunteers help stuff backpacks with food for kids in Regina elementary schools. Here volunteers donate their time to a community garden. P H O TO S : M O S A I C
BY JENNIFER JACOBY-SMITH
“Our mission is to help the world grow the food it needs. As the world’s largest supplier of phosphate and potash, we consider this mission to be a compelling one that carries vast responsibility.” – Mosaic mission statement
It’s not simply a mission statement printed on their website. It is a responsibility potash giant Mosaic takes very seriously. “With population climbing from seven billion to nine billion by 2050, food production has to double in order to meet the demand of a growing global population,” explains Mosaic spokesperson Sarah Fedorchuk. “Our mission is to help the world grow the food it needs. It’s one that our employees are really committed to.” With the company’s commitment to providing the world the food it needs, it made sense when looking to partner with local organizations to look
at those groups working in the area of food security. Through partnerships with over a dozen partner organizations in Saskatchewan, Mosaic helps to serve 2.2 million meals a year. One popular program is a partnership with the Salvation Army first announced during Grey Cup in 2013. The Backpack program provides backpacks filled with food for students to take home on the weekends. Workers at the Salvation Army responded to feedback from teachers and parents. Lunch and breakfast programs were very helpful during the week, but on weekends those same students might not have enough food. “They saw a need and created a program to help try and fill it,” notes Fedorchuk. Not only does Mosaic participate through a monetary donation, employees are given the chance to see the impact up close through volunteer opportunities. The backpacks are packed on Friday so Regina elementary school children can pick them up
the school year for schools at the Cowessess and Ochapowace First Nations – two First Nations closest to Mosaic’s Esterhazy operations. Mosaic also continues to support food banks across Saskatchewan. Employee groups throughout the company volunteer their time at various food programs. Sometimes those volunteer groups are organized Mosaic is committed to help the world grow the food it on their own time needs, but also supporting food and nutrition programs without waiting for the close to home, including monetary donations to food banks company to put out a across the province including Souls Harbour in Regina. call for volunteers. “They’re volunteering on their own and building a relationship with all these on their way home. Another long-standing food part- community partners,” notes Fedornership is with the Saskatchewan chuk. Food security is a universal need. School Boards Association through the Mosaic Extreme School Make- It’s easy to assume that food secuover Challenge. Started in 2006, the rity issues only exist in developing Makeover Challenge asks Saskatche- countries. But, Fedorchuk points out, wan schools to develop action plans to “When you start to work in your own improve school nutrition and health. communities, you start to see that it’s Ten winners are selected by a jury an issue even in Saskatchewan.” to win a $10,000 grant to support their That’s why Mosaic will continue nutrition or hunger-based programs. its work in the community, spendSome schools use the grant towards ing $830,000 on food programs in the establishing a community garden or province each year. For Mosaic it’s developing breakfast and snack pro- about making an impact on food secugrams for students. Others might use rity down the street, but also across it to expand an onsite kitchen to offer the world. improved education around nutrition, Mosaic sells their product to 40 cooking, agriculture, food safety and countries across the globe through First Nations and Métis knowledge. Canpotex. This global reach is about Everything culminates with a Walk advancing crop nutrition knowledge for Breakfast which allows members of and practices. Providing nutrients the winning schools to show off what such as potash and phosphate to the their winning entry accomplished for soil by using efficient fertilizers can maximize yields. the school and community. Other partnerships have provided “I think one of the things that makes breakfast and lunch every day during Mosaic unique is that we have boots
on the ground in all these countries that we’re selling to. So we not only sell product, but we work really closely with farmers to make sure they’re using the science in order to get the best yield from their crops,” says Fedorchuk. Agronomists and sales managers in places like China, India and Brazil are out in the field with farmers helping take their operation from surviving to thriving with yields that provide food for their family, community, and beyond.
MOSAIC BY THE NUMBERS: • In 2017 and 2018, Mosaic spent $830,000 on food programs in Saskatchewan. • Through Canpotex, Mosaic sells their product to 40 countries worldwide. Half of their product stays in North America and half goes on the global market. • Mosaic helps to serve 2.2 million meals a year. • Mosaic employs 2,200 in Saskatchewan. • Mosaic conducts more than 500 crop nutrition research and development trials with researchers, universities and growers in the United States, Canada, Brazil, China, India, Northern Latin America (Mexico to Peru), Argentina and Chile. • The K3 shaft near Esterhazy was the first production shaft sunk in Saskatchewan in over 50 years.
How much do you know about potash? EXPAND YOUR KNOWLEDGE OF SASKATCHEWAN’S POTASH INDUSTRY WITH THESE INTERESTING FACTS: • Saskatchewan is the top producer of potash in the world, with ten mines currently in operation in the province. Source: Saskatchewan Potash Producers Association • Conventional potash mines access reserves located 1,000 metres below the earth’s surface. Solution mines can access potash reserves exceeding 1,600 metres below the earth’s surface. Source: Canpotex • Canada is the world’s largest exporter of potash. In 2017, Canada exported 19 million tonnes of potash, accounting for 39 per cent of the world’s total exports. Source: Natural Resources Canada • Saskatchewan has 50 per cent of the known global potash reserves. Source: Saskatoon Regional Economic Development Authority (SREDA) • At the Potash Interpretive Centre in Esterhazy, Saskatchewan, you can take a virtual tour of 10 rock- and waterbearing formations to the potash seam. The hands-on, interactive display is “just like being there!”. The centre is open from May through September on Highway 22 in Esterhazy.
Source: www.townofesterhazy.ca • Saskatchewan exports potash to more than 75 different countries around the globe. Source: Saskatoon Regional Economic Development Authority (SREDA) • Approximately 95 per cent of all potash produced is used as fertilizer to support plant growth. The remaining portion is used in a variety of chemical and manufactured products, including detergents, ceramics, pharmaceuticals, water conditions and alternatives to de-icing salt. Source: Natural Resources Canada • In 1996, Sylvite (potash) was proclaimed Saskatchewan’s Mineral Emblem. Source: Saskatchewan Mining Association • Potash is the common name given to a group of minerals and chemicals containing potassium (K), which is a basic nutrient for plants and an important element of fertilizer. Source: Natural Resources Canada • The term “potash” arose from the traditional practice of producing potassium carbonate, needed for
making soap, by the leaching of wood ashes in large iron pots. The ash-like crystalline residue remaining in the pots was called “pot ash”. Source: Canpotex • Saskatchewan producers mine potash in two ways: conventional and solution. The conventional mining method utilizes large mine machines that extract the ore by cutting tunnels into the ore body. The raw ore is then conveyed to the surface for processing using a production hoist. In solution mining, hot water is pumped underground into the ore body under high pressure where it dissolves the potassium chloride (KCI) and sodium chloride (NaCI). The resulting brine solution is then pumped back up to the surface for processing. On the surface, the brine solution is directed to a crystallizer circuit or large cooling pond where the KCI is recovered. Source: Canpotex • Potassium is an important element of the human diet. It is essential for growth and the maintenance of tissues, muscles and organs, as well as the electrical activity of the heart. Source: Natural Resources Canada
GR AP HIC: CANP OT EX
Capital Industrial Sales & Service
-(--#-""*,0)*"& .+0. (0!%/ .* ('"'"$ E;EE4D &M;#:,> LD , )8("1BGB=> L11B+,$B1 D"B*(,D8 ,1: (,),G>D) HB! )"8 :LD(B+8!> BH 18*9 L11B+,$+8 DBGF$B1D HB! 3L1L1= B'8!,$B1,G (",GG81=8D L1 I,DJ,)("8*,14D 3L18!,GD L1:FD)!>7 E) '!B+L:8D L11B+,$+8 DF''G> (",L1 (B3',1L8D *L)" )"8 B''B!)F1L)> )B (B118() L1 , '!L+,)8 D861= *L)" G8,:L1= 3L18!,GD (B3',1L8D *"B ,!8 GBBJL1= )B L3'!B+8 B'8!,$B1D7
Industrial Switching Terminal & Transload Services Logistics Material Handling Mechanical Services Railcar Storage Shortline Operations Engineering and Track Services
&M;#:,> /20@ ),J8D 'G,(8 B1 %'!LG -!: ,) )"8 IF''G> <",L1 5B!F3 L1 I,DJ,)BB19 IC7 5B! 3B!8 L1HB!3,$B1 +LDL) FD ,) ***7L3LL7(,.L1L$,$+8D.:83B:,>
COMPLETE RAIL SOLUTIONS OPTIMIZE THE BULK MATERIAL SUPPLY CHAIN AT MORE THAN 25 LOCATIONS ACROSS NORTH AMERICA CONNECT CLASS 1 RAILWAYS AND INDUSTRY OUR CUSTOMERS TRUST US TO MOVE AND MANAGE MORE THAN $22 BILLION OF PRODUCT A YEAR
/20 ? 00/ K8D8,!(" &!L+8 A I,DJ,)BB19 IC
firstname.lastname@example.org | Toll-Free 1.866.989.5310
T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE
The Bethune Bethune mine mine is is on on track track to to hit hit its its forecast forecast of of 1.4 1.4 to to 1.5 1.5 million million tonnes tonnes of of production production in in 2018, 2018, says says president president Sam Sam Farris. Farris. The
P HOT O:: KSP C/GR E G HUSZAR
Farris takes on new leadership role at K+S Potash Canada onecompany companyand andblurring blurringthe thelines lines one between the offices.” Parentcompany companyK+S K+SAG AGis istraded traded Parent on the Frankfurt stock exchange on the Frankfurt stock exchange under the the ticker ticker symbol symbol ‘SDF.’ ‘SDF.’ under Canadians will be familiar with the Canadians will be familiar with the company’s name because, three company’s name because, three years ago, ago, Potash Potash Corporation Corporation of of years Saskatchewan launched launched aa public public Saskatchewan offer for for all all outstanding outstanding shares shares offer of K+S AG. In October 2015, of K+S AG. In October 2015, PotashCorp ultimately ultimately backed backed PotashCorp away from from the the multi multi billion-dollar billion-dollar away takeover offer. PotashCorp has takeover offer. PotashCorp has since merged merged with with Agrium Agrium to to form form since Nutrien. Nutrien. Farris’ primary primary objective objective for for the the Farris’ company in in his his new new position position as as company president is cultural integration president is cultural integration of the the company, company, but but he he has has longerlongerof term goals goals as as well. well. term
BY ELIZABETH ELIZABETH IRELAND IRELAND BY
Formerly known known as as the the Legacy Legacy Formerly Project, Bethune is the first greenfield Project, Bethune is the first greenfield potash mine mine in in Saskatchewan Saskatchewan in in potash nearly 50 years. Also new in his role nearly 50 years. Also new in his role is Sam Sam Farris: Farris: K+S K+S Potash Potash Canada’s Canada’s is (KSPC) new new president president and and general general (KSPC) manager. KSPC KSPC is is aa subsidiary subsidiary of of manager. the German company K+S Group the German company K+S Group and Farris Farris was was appointed appointed president president and ofKSPC KSPCfollowing followingthe theretirement retirementof of of Dr. Ulrich Lamp. Dr. Ulrich Lamp. Farris, who who grew grew up up on on aa Farris, farm in in Shaunavon, Shaunavon, southwest southwest farm Saskatchewan, has has worked worked for for Saskatchewan, KSPC since August 2011. He was KSPC since August 2011. He was most recently recently in in the the role role of of senior senior most vice president and general manager vice president and general manager of the the Bethune Bethune mine. mine. Farris Farris will will of continue to to serve serve as as the the general general continue manager of of the the mine, mine, as as well well as as his his manager new role as president. new role as president. Notonly onlyis isBethune Bethunethe theprovince’s province’s Not first new new solution solution potash potash mine mine in in 50 50 first years, it is only the second solution years, it is only the second solution mine “by “by design” design” in in Saskatchewan. Saskatchewan. mine The other other is is the the Mosaic Mosaic Company’s Company’s The nearby mine in Belle Plaine. Building nearby mine in Belle Plaine. Building a greenfield potash mine involves a greenfield potash mine involves decades of of planning planning and and aa massive massive decades financial commitment, with therisk risk financial commitment, with the of commodity prices fluctuating of commodity prices fluctuating during that that time. time. during “Being president president of of KSPC KSPC is is “Being exciting. It has been a unique exciting. It has been a unique chance to to bring bring KSPC KSPC closer closer chance together between between our our locations. locations. II together live in in Regina Regina and and my my GM GM duties duties live still have me spending the majority still have me spending the majority of my my time time at at the the Bethune Bethune mine, mine, but but of I do try to get to Saskatoon at least I do try to get to Saskatoon at least every second second week. week. The The sales sales and and every marketing of of our our potash potash is is done done out out marketing
“I want want to to continue continue to to build build “I on KSPC KSPC as as aa single, single, cohesive cohesive on team. Over Over the the next next year year or or two, two, team. we’re focusing on technical and we’re focusing on technical and production stabilization, stabilization, as as well well production as organizational organizational stabilization. stabilization. as I believe that our employees are I believe that our employees are gettingcomfortable comfortableand andhitting hittingtheir their getting stride. Ramping-up Ramping-up the the Bethune Bethune stride. mine has been an immensely mine has been an immensely high rate rate of of change change to to absorb. absorb. It’s It’s high incredible to to think think that that our our team team is is incredible on track to hit our forecast of 1.4 to on track to hit our forecast of 1.4 to 1.5 million million tonnes tonnes of of production production in in 1.5 2018.” 2018.” When asked asked what what makes makes the the When Bethune mine unique in the Bethune mine unique in the province’s potash potash industry, industry, Farris Farris province’s is quick to answer, “It’s 50 years is quick to answer, “It’s 50 years newer! newer! “We hear hear from from our our vendors vendors and and “We
suppliers––who whoobviously obviouslysee seemany many suppliers different worksites and leadership styles––that thatat atKSPC KSPCit’s it’sour ourculture culture styles that is our strength. That we go go that is our strength. That we above and and beyond beyond the the technical technical above merits of of an an individual individual employee. employee. merits I’m proud of that.” I’m proud of that.” Finally, Farris Farris is is honoured honoured Finally, that KSPC KSPC was was named named one one of of that Saskatchewan’s Top Employers for Saskatchewan’s Top Employers for thefifth fifthyear yearin inaarow. row.In InNovember November the 2018 KSPC KSPC was was also also named named one one 2018 of Canada’s Top 100 Employers, of Canada’s Top 100 Employers, an accolade accolade the the company company has has an received since since 2017. 2014.Canada’s Canada’s Top Top received 100 Employers Employers is is based based on on factors factors 100 such as the physical workplace, such as the physical workplace, employee benefits, benefits, performance performance employee management, training and skills skills management, training and development, and community development, and community involvement. involvement.
Sam Farris Farris has has been been appointed appointed the the Sam new President and General Manager, new President and General Manager, Operations of of K+S K+S Potash Potash Canada. Canada. Operations P H OTO: KSP C P H O TO: KS PC
Sincethen, then,he hehas hasimmersed immersedhimself himself Since in the world of potash mining. in the world of potash mining. Bethune is is K+S K+S Group’s Group’s largest largest Bethune investment in North America and investment in North America and employs approximately 360 people. employs approximately 360 people. The mine mine and and production production facility facility The officially opened officially opened in in spring spring 2017. 2017. KSPC’s other other Canadian Canadian activities activities KSPC’s are based based out out of of its its Wall Wall Street Street are
corporate office in Saskatoon, where approximately 70 70 employees employees work. work. approximately KSPC also includes a world-class KSPC also includes a world-class potashhandling handlingand andstorage storagefacility, facility, potash operated in partnership with Pacific operated in partnership with Pacific Coast Terminals, in Port Moody, Coast Terminals, in Port Moody, British Columbia. Columbia. British “During the Legacy Legacy Project’s Project’s “During the of K+S Group’s head office in Kassel, operational readiness phases, our Germany,” says Farris. operational readiness phases, our Germany,” says Farris. Farris has has both both undergraduate undergraduate engineering engineering team team was was primarily primarily Farris andgraduate graduatedegrees degreesin inmechanical mechanical based based in in Saskatoon. Saskatoon. Now Now that that the the and engineering from the University of mine is operational and ramping engineering from the University of mine is operational and ramping Saskatchewan. He He worked worked for for two two up, up, the the emphasis emphasis has has shifted shifted to to Saskatchewan. years as as aa consultant consultant before before joining joining fully fully integrating integrating our our Saskatoon, Saskatoon, years theteam teamat atBelle BellePlaine Plainemine minein in2000. 2000. Vancouver Vancouver and and Bethune Bethune teams teams into into the
The Bethune Bethune mine mine is is K+S K+S Group’s Group’s largest largest investment investment in in North North America America to to date. date. The The mine mine and and production production facility facility The officially opened opened in in May May of of 2017, 2017, becoming becoming the the first first new new solution solution potash potash mine mine in in Saskatchewan Saskatchewan in in nearly nearly 50 50 years. years. officially POSTMEDIA FILE P HOT O P OST MEDIA FILE P HOT O
DEEPLY ROOTED Our commitmen t to Saskatchewan runs deep. Through ongoing employment, local business partnerships and community investmen t, we’ll make sure opportunity continues to take root in our province for generations to come.
T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE Canpotex driven by vision of a more foodsecure world BY JEANNIE ARMSTRONG
Of the world’s current population of 7.6 billion people, an estimated 815 million people are living in hunger, according to the United Nations Food and Agriculture Organization (FAO). The challenge will only intensify as the earth’s population continues to expand to an anticipated 9 billion people by the year 2050. Canpotex is driven by the vision of a more food-secure world. Headquartered in Saskatoon, Canpotex is the world’s leading exporter of high-quality Canadian potash. Potash contains potassium, a nutrient essential for healthy plant growth. Through the balanced application of fertilizer, including potassium (K), nitrogen (N) and phosphorous (P), crop yield and food quality increase significantly. Marketing exclusively to overseas markets, Canpotex sells and delivers over 15 grades of potash produced in Saskatchewan on behalf of its two shareholders: Nutrien and Mosaic. The company’s largest markets include Brazil, China, India, Indonesia and Malaysia. A few weeks ago, Canpotex president and CEO Ken Seitz was standing in a rice paddy in rural Viet Nam, talking with local farmers. He was there to participate firsthand in the company’s farmer education program that has delivered agricultural education programming to farmers in approximately 40 countries around the world. “You get to work with farmers, lovely people all over the world, who face many of the same challenges
our local farmers face here. We’re able to improve their livelihoods and their families. It’s a very fulfilling experience,” says Seitz. The sessions, which include workshops and infield demonstrations, teach farmers how to use potash to grow better food. Test plots show the difference between crops grown in unfertilized soil and in soil with balanced fertilization. “It’s a pretty visual and dramatic demonstration,” says Seitz. Since the program’s inception over three decades ago, Canpotex has invested approximately $50 million in market development initiatives, including farmer education programs, around the globe. “We take a tailored approached for every region where we do business, taking into account different agricultural crops, weather patterns, soil conditions, culture, language and business practices,” says Seitz. As part of its Fertilizer Management Program, Canpotex also brings customers from different countries to Saskatchewan, to see how potash is mined, produced and shipped to port. “It’s an opportunity for Canpotex to demonstrate that we are shipping and supplying potash in a responsible and efficient manner,” says Seitz. “They head back to their home countries with a broader understanding of what it is that we do here, the size of the undertaking that is involved to get potash from landlocked Saskatchewan to the palm oil plantations in Indonesia.” The group of 20 international representatives spent two weeks
Ken Seitz, Canpotex president and CEO, says the company is proud to support community initiatives that contribute to the food security of children. By matching public donations up to $50,000, Canpotex raised over $100,000 for the Saskatoon Food Bank & Learning Centre’s Milk for Children program this year. Canpotex employees also volunteer hundreds of hours at the Food Bank. P HOT O: CANP OT EX
in September in Canada, toured provincial potash mines, attended sessions at the University of Saskatchewan, saw Canpotex’s rail car maintenance facility near Lanigan and visited several farming operations. The final stop was at Canpotex’s Neptune Bulk Terminal in Vancouver, where potash is loaded onto vessels for overseas destinations. “The program has been running for two years now and has been remarkably successful. The feedback has been incredible from participants, and I have no doubt that many lasting friendships have been formed with people from different corners of the planet,” says Seitz. While Canpotex markets exclusively to overseas customers, the company takes its responsibilities as local citizens very seriously. Canpotex is proud to support a number of local community initiatives that contribute positively to the food security of children. For the second year in a row, Canpotex matched the public’s donations up to $50,000 to the Milk for Children program offered at the Saskatoon Food Bank & Learning Centre. Seitz points out that of the 20,000 people who visit the Saskatoon Food Bank each month, almost half are children. The initiative spearheaded by Canpotex raised over $100,000 for the Milk for Children program this year, accounting for two-thirds of the program’s annual budget. “We are also very proud that our employees have volunteered hundreds of hours at the Food Bank. There’s an incredible need there
and this is something we’re very committed to,” says Seitz. Canpotex has also made a three-year commitment to the Salvation Army, donating $26,000 annually to sponsor the Canpotex Weekend Investment in Nutrition program. This program provides children with backpacks filled with nutritious, child-friendly food. Canpotex is also pleased to support the annual Jim Pattison Children’s Hospital Foundation Radiothon. That donation is helping to equip the Children’s Hospital with infant formula warmers.
“There’s a real need here in Saskatoon to promote food security and address child hunger, a more substantive need than people really understand,” says Seitz. “Canpotex has been operating in Saskatoon since 1972 and we intend to be here for a long time to come. There’s no better reason to get involved in these community initiatives than to say, it’s the right thing to do. We can mobilize our people to volunteer where there’s a need. We have some financial resources that we can deploy in our home community. It’s just the right thing to do.”
Canpotex brings customers from around the world to Saskatchewan to see how potash is mined, processed and shipped to port, as part of its Fertilizer Management Program. In September, Canpotex hosted 20 international representatives, taking them to visit mine sites across the province, its rail car maintenance facility, the University of Saskatchewan and local farms. The group’s tour ended at Canpotex’s Neptune Bulk Terminal in Vancouver. P HOT O: CANP OT EX
Proactive Consulting provides real-world safety training
BY ELIZABETH IRELAND
Mine safety has progressed tremendously since the 19th century and the use of canaries in coal mines to detect carbon monoxide and other gases before the miners passed out. In Saskatchewan, Proactive Consulting provides professional safety and equipment training and certification to the potash industry. Other sectors that the company serves include oil and gas, construction and manufacturing. With training facilities in Regina and Saskatoon, experienced instructors focus on leadership skills and realworld safety initiatives when they teach. Chris Budzich is president of Proactive Consulting and has 18 years experience in the health and safety management field. He founded the business with three partners more than a decade ago but is now the sole owner. Budzich is also a Canadian Registered Safety Professional (CRSP). Budzich describes Proactive Consulting ’s clients as major companies in the province’s potash industry, as well as contractors and suppliers to those major companies. “For companies that need to train anywhere from two to 20 people,
our services are ideal. We have the instructors and all the equipment already in place at our schools in Regina and Saskatoon. This way we can easily serve our clients in mining, oil and gas, construction and manufacturing,” says Budzich. Originally from Alberta, Budzich began his career in the industrial cleaning business and travelled throughout North America. His family now includes three daughters, one granddaughter and “lots of estrogen.” His wife Amy is Proactive Consulting’s office manager in Regina. Participating on provincial and national committees also bolsters Budzich’s health and safety credentials. He participated in the Joint Industry Committee responsible for the development of standards for Saskatchewan’s Safety Management, Auditing and Certification programs. He is also one of the province’s representatives at the Canadian Standards Association (CSA). Powered mobile equipment operation courses are the company’s bread and butter. Popular courses that Proactive Consulting offers include aerial lift, confined space entry, fall protection, forklift, global ground disturbance, overhead crane
competent worker, rigging, skid steer and telehandler. The company employs six fulltime and two part-time instructors. These instructors have hands-on industry experience, ranging from past roles in underground mine practical training, heavy equipment operation, and powered mobile equipment training. “In many instances it may be practical and cost-effective for companies to hire a third party, or to even work with that third party offsite, to train employees. Proactive Consulting is one of the companies in our province that offers these services,” says Eric Anderson, Executive Director of the Saskatchewan Industrial and Mining Suppliers Association (SIMSA). Another safety-related service that Proactive Consulting offers is a complete (or partial) facility inspection. Their team does an observational tour of the facility to gauge compliance with that company’s health and safety standards, as well as compliance with any applicable government legislation. “Safety is the lead-off topic at every meeting and conference in the resource sector and that reflects
Chris Budzich leads Proactive Consulting, a company that provides professional safety and equipment training and certification to the potash industry. P HOT O: WENDY LIVINGST ONE
its level of importance in Canada,” says Anderson. SIMSA represents companies who provide goods and services to Saskatchewan’s mining, energy and industrial sectors. SIMSA’s membership consists of more than 170 companies with $10 billion in annual revenues and 20,000 employees.
“By helping companies develop and implement safety management systems, and training their employees, we help Saskatchewan’s potash industry to practice bestin-class health and safety,” says Budzich. Find out more about courses offered at proactiveconsulting.ca.
T H U R S D A Y, N O V E M B E R 1 5 , 2 0 1 8
POTASH IN OUR PROVINCE Vanguard One project a milestone for the potash industry BY CAROL TODD
It’s not outer space, it’s under ground, but Gensource’s Vanguard One project is going where no mine has gone before. From the mining operation itself to the company’s vertically-integrated business plan, Mike Ferguson, the president and CEO of Gensource Potash Corporation, says the mine north of Moose Jaw will set a new standard for the industry. And, it’s starting from the bottom up, with a mining operation so environmentally friendly it isn’t even considered to be a development project at all. “It’s huge. It’s a great milestone,” Ferguson says of the Province of Saskatchewan’s decision that the Vanguard One project is not required to complete a full Environmental Impact Assessment (EIA), the first potash mine to ever receive such a distinction. Ferguson says the project did not “trigger any of the requirements for an environmental assessment,” essentially deeming that the project isn’t a development. “So, it’s very exciting – the first potash project ever to proceed this way and for good reason. We simply don’t have an impact the way a traditional potash operation has,” he says. The Vanguard One project will use selective dissolution mining technology, a form of solution mining similar to that already in use elsewhere in Saskatchewan. The difference is that, instead of using clean, fresh water, a
highly concentrated brine of sodium chloride (NaCl) is injected into deep wells. The approach doesn’t require any workers or equipment underground and, since the NaCl solution can’t dissolve any more salt, it only dissolves potassium chloride (KCl) and the potash-laden solution is then pumped to the surface. “This is a potash mine like no one has ever seen before. There are no tailings; there are no brine ponds,” says Ferguson. The smaller scale of the project compared to traditional mines is also a factor, with Vanguard One expected to produce 250,000 tonnes of potash per year, about a tenth of a typical potash operation. Ferguson says that means less of an environmental impact and less of an impact on the nearby communities. “There’s also a community or sociological impact due to the size of these things,” he says, pointing to the K+S Potash Canada Bethune mine, which he says is the “size of a small city.” The project will employ about 150 people during construction and fewer than 50 people once it’s in operation. “So we see these things as the right size. They’re right size for communities in Saskatchewan and for the environment. They’re very small and distributed so we don’t create huge impacts in the one location,” he says. Production at Vanguard One is now expected to begin in late 2020. The feasibility study is complete and the environmental assessment has been deemed to be unnecessary, so Fergu-
Mike Ferguson, president and CEO of Gensource Potash Corporation. POS TM E D I A F I L E PH OTO
son expects construction to begin this winter. “We’ll start drilling the caverns in the wintertime on frozen ground when it’s nicer to drill on frozen ground rather than mud. We’ll start surface construction in the spring,” he says. Still to be finalized this fall is the financial package, and Gensource is working with a U.S. company to finalize an agreement to purchase all of the project’s final product. The company, which has requested anonymity for now, is “a Fortune 50 company in the United States; a very large and existing player in the fertilizer business,” Ferguson says.
Gensource Potash Corporation expects construction to begin this winter on its Vanguard One potash mine located north of Moose Jaw. CEO Mike Ferguson says Vanguard One will be “a potash mine like no one has ever seen before. There are no tailings; there are no brine ponds.” GENSOURCE P OTASH COR P OR AT ION
That kind of vertical integration, where production goes almost directly to the user, is a key component of the Gensource business model, which also stresses being small and efficient. “Our definition of vertically integrated simply means creating that direct connection from the product produced in Saskatchewan to a specific, identified market,” he says. The U.S. company will provide that connection. “That’s what these guys bring to the table; they are in front of the farmer every day, buying their grain from them, selling them seed, and selling them fertilizer. So, they are the touch point directly between us and the farmer who puts
this stuff on his fields,” he says. Ferguson says the Vanguard One project is the first “module” of what Gensource expects to become the basic building block for future endeavours. “Our larger business plan, of course, is to have several of these things going and, once that starts to happen, we can start to service the end market much better than existing structure of the industry,” he says. That end market is, of course, the farmer who uses the output of a potash mine to fertilize their fields. Ferguson says the goal is to “provide a better supply chain for that family, for that person who’s operating that farm.”
Cando gets potash on the move BY PAT REDIGER
Cando Rail Services is helping to keep Saskatchewan’s potash industry on track. The company moves more than 13 million tonnes of potash a year in more than 125,000 railcars, handling 70 per cent of all potash produced in Canada. In Saskatchewan, Cando has more than 80 employees working at potash mines and the company builds unit potash trains that are anywhere from 75 to 205 cars long. “We have been providing rail service to Saskatchewan’s potash mines for more than 20 years, starting with a track maintenance and inspection contract at PCS Rocanville,” said Julie Pomehichuk, Cando director of marketing and communications. “Since then, we have grown our presence and provide a variety of rail services at six potash mines in Saskatchewan: Allan, Rocanville and Vanscoy for Nutrien (formally PCS and Agrium), and Colonsay, Esterhazy and Belle Plaine for Mosaic.” Cando is a complete rail solution company focused on connecting industry to the Class 1 railways. Its specialized services include rail switching, material handling, logistics, engineering and track services, terminal and transload services, railcar storage and mechanical services. As Pomehichuk explained, a key asset that allows the company to haul massive amounts of potash out of Saskatchewan are the partnerships it has committed to creating with its customers. She said the company is on the ground working with its customer’s team, analyzing their supply chain so it runs more smoothly, safely and efficiently. To aid with this, Pomehichuk said the company is preparing to launch a new proprietary, cloud-based logistics service offering.
Cando Rail Services transports 70 per cent of all potash produced in Canada, providing rail services for six mines operated in Saskatchewan by Mosaic and Nutrien. The company is currently preparing to launch a new proprietary cloud-based logistics offering that will provide its customers with enhanced analytics and assessments. PH OTO: CAN D O RAI L S E RVI CE S / CH RI S DAVI D S ON
“Using GPS technology, the new offering provides customers with real time railcar and shipment visibility, predictive and presumptive analytical insights into the supply chain, and a nation-wide, cross-commodity, real-time health assessment of the railbased supply chain,” she said. “Several customers in Saskatchewan are currently testing the new offering with very positive feedback.” She said the company also has close working relationships with Class 1 railways and have earned their confidence to operate on their tracks, with main line running rights at a number of locations across Saskatchewan. “Our rail experts, who have been trained on all railway rules and have years of experience working on the railway, switch the loaded cars into
the correct order in the customer’s yard, building full trains and smaller blocks of cars depending on customer orders,” Pomehichuk said. “Our running rights then allow us to pull the trains out to the main line track for CP or CN to hook and haul away. We build the trains as per customer orders and perform all necessary inspections, ensuring the trains are ready for the Class 1 railways to pull them away.” Chad Jones, Cando’s general manager of Industrial Rail Services for the Saskatchewan region, added that Cando acts as the “linchpin” between the mining companies and the Class 1 railways, focusing on the rail aspects so that mining companies can focus on their core business. “We communicate with the Class 1 railways and ensure all railway regu-
latory standards are being met in the mining companies’ yards,” he said. “The sustained collaboration between Cando, the mining companies, and the Class 1 railways reflects the close working relationships that are fundamental to Cando’s service. Through Cando’s involvement, we ensure each party benefits by gaining operational and cost-saving efficiencies, and strengthening their focus on their core business.” Cando’s largest customer in Saskatchewan is the Mosaic Company. Cando was awarded the switching and mechanical services contract for Mosaic’s three potash mines in Saskatchewan and began the implementation process in fall 2015. Throughout this process, Cando established mechanical railcar services
at the Belle Plaine and Colonsay mines, including car repair and cleaning. The company worked closely with Mosaic and CP to develop operating plans for the switching services at Belle Plaine and facilitate the efficient movement of full loads and empty cars. These plans, finalized in early 2016, provided Cando with the operating authority between the mine site and CP’s Belle Plaine serving yard. Cando also worked collaboratively with Mosaic and CP to develop the switching operations for the Colonsay and Esterhazy mine sites, which required coordinating shipping volumes through CP’s Bredenbury serving yard. CP gave Cando operating authority along their mainline subdivision between Esterhazy and Bredenbury, a distance of approximately 23 miles. Jones said that on top of delivering quality services, Cando is committed to safety. He said it’s a “way of life” for the company. Cando maintains a railway operating certificate from Transport Canada, and Jones noted the company’s safety management system meets or exceeds Transport Canada and provincial railway regulations and industrial standards such as ISNetworld, Avetta and Cognibox. The company has won several industry and customer safety awards in recent years, including a safety award from the Railway Association of Canada in 2018 for its employee safety education program. “We are committed to the personal safety, health and well-being of every employee of our company,” Jones said. “We have a shared safety culture that includes the participation of every one, every day, in every job, to perform our required duties and provide safe and efficient services to our customers. At Cando we are TrackSmart, with every job we do, every day that we do it.”
CMI develops innovative solutions for the mining industry
Introducing the CMI-EV-1730 battery-powered man carrier ELIZABETH IRELAND Postmedia Content Works
Saskatoon-based Continental Mine & Industrial Supply Ltd. (CMI) collaborates with its customers to define and provide innovative solutions for the Saskatchewan mining industry. What this means is that CMI has a unique process to leverage its team’s more than 100 years of combined experience in all aspects of mining. This experience ranges from underground production and maintenance to surface processing, major projects and mine expansions. Established in 1990, CMI provides dedicated service to the province’s mining and industrial operations. Using the wisdom that CMI’s team has gained throughout the years allows the team to ask all the right questions at the start of each project. In this way, the right problem, the scope of the project and the customer’s needs are welldefined ahead of time. “Once this initial assessment has been done correctly, it’s then quite easy to deliver the right solution by providing equipment that’s tailored to meet our customer’s requirements,” says Dwayne Howatt, a partner at CMI. Howatt grew up in Regina and studied mechanical engineering at the University of Saskatchewan. His career includes more than a decade at Agrium as a surface maintenance project engineer, underground field foreman, head of engineering for surface and underground, and then mine maintenance superintendent. In 2007 Howatt founded
Howatt Consulting as a project management firm and it has since become a full- ser vice engineering consulting firm. Howatt C o n s u l t in g i s p r e s en t l y managed by general manager and V-P Rory Duncan and has approximately 30 employees. In 2010 Howatt joined CMI as a partner. “I’m driven by building things and I thrive on making things bigger and better. That’s why I like expansiontype projects and developing new equipment,” describes Howatt. The next generation of Saskatchewan mining – and mining in general – will work to expand and maximize the use of electric equipment. As a result, hopefully the emissions and operating costs associated with diesel equipment will be minimized. Reduced ventilation requirements will also mean that mining companies can increase productivity within their operations. However, this shift to electric equipment does not come without its challenges. Mine operations have experienced reliability issues with batteries and mechanical components. In addition, the high cost of infrastructure for charging systems is too much for some companies to implement. “We’ve used our process to develop our new CMIEV-1730 battery-powered man carrier. CMI’s designs take all of these issues and challenges into consideration to provide the optimum solution for all mining applications,” says Howatt. C M I ’s f i r s t b a t t e r y powered man carrier was used at a palladium and
platinum mine in Montana. “The Montana mine had some unique challenges involving ver y long and steep ramps to enter and exit the mine. Our regenerative braking proved to be very beneficial to not only utilize the energ y to maximize battery life, but to reduce maintenance costs on brakes.” First, CMI starts with a great chassis; the Club Car Carryall 1700 chassis is already proven in Saskatchewan’s potash mines. This chassis has well over 11,000 hours of service with minimal repair requirements. Plus, it has a 1,600 lbs rated capacity and comes with a certified modular ROPS with an optional 72-inch low profile version. Next CMI adds its batterypowered drive system into the CMI-EV-1730’s chassis. This system is designed with modular construction for ease of maintenance. The drive system has six main components: the drive motor, programmable drive controller, lithium iron magnesium phosphate batteries, the batter y management system (BMS), the control box and the charger. CMI’s system is designed to protect mechanical components from failure due to the torque capacity of the electric motor system. While preventing abuse, the control system will monitor overall system current and the allowable time at high-current loading can be adjusted to meet the operation’s needs. Designed to provide maximum reliability, this control system can also have other safety options added,
Continental Mine & Industrial Supply (CMI) has developed a fully self-contained batterypowered man-carrier for the mining industry. Available in a variety of models, the system maximizes travel distance by capitalizing on regenerative braking and opportunity charging. PHOTO: CMI such as inclinometers or impact monitoring. Plus, its reliability is backed by a fiveyear battery warranty. There are many models available with battery capacities up to 210 Ah, with an estimated range of 60 to 75 kms, without regenerative braking or opportunity charging. “Our regenerative braking system is designed to provide a third means of braking while it maximizes battery life and minimizes brake maintenance. The system is
designed to bring our vehicle to a full-stop on a ramp and the degree of braking can be optimized based on each c ustomer ’s unique mine conditions.” To p r o v i d e m o r e opportunities to charge, while eliminating any costs for a major charging infrastructure, the new CMIEV-1730 is equipped with an onboard charging system. This system can plug into any 110 or 220 volt plug throughout the mine, which
allows for charging during lunch and coffee breaks. Concludes Howatt: “Our team at CMI has produced a battery-powered man carrier that can be tailored to the unique requirements of any customer’s mine. We look forward to working with you to optimize your fleet, reduce emissions and maximize your mine’s overall efficiency.” Find out more about the CMI-EV-1730 battery-powered man carrier at www.cmisk.ca or phone (306) 975-1944.
THIS STORY WAS CREATED BY CONTENT WORKS, POSTMEDIA’S COMMERCIAL CONTENT DIVISION, ON BEHALF OF CONTINENTAL MINE & INDUSTRIAL SUPPLY LTD. 10124590-06_1_1
Battery Powered Mancarrier • 48 Volt Lithium Ion Battery System A/C Drive Motor • On-Board Multi-Voltage Charging System (110V-230V) • Zero Maintenance Self-Protecting Battery Management System • 5 Year Battery Warranty (3 Year Unlimited Replacement) • Regenerative Braking System + Opportunity Charging • Mine Proven Chassis & Drive Train • Certified Modular R.O.P.S. System • 100% Electrical Disconnect with Master Switch • Additional Safety Options Available Upon Request • Customized drive profile to meet customers unique requirements
The mining industry needed a better personnel carrier. CMI professionals came up with a tailored solution! CMI designs, builds, and integrates mining and industrial solutions that can maximize the productivity and profitability of your company.
TEL | (306) 975 - 1944 web | cmisk.ca
Our expertise, years of experience and processes give us a unique perspective of our customers’ requirements. CMI delivers tailored solutions by asking the right questions and understanding the individual needs of our customers.