Regina Leader Post Potash in our Province 2016

POTASH IN OUR PROVINCE

With its $3-billion expansion nearing completion, PotashCorp’s Rocanville potash mine will rank among the largest underground mines in the world.

P HOT O: P OTASHCOR P

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2016 INDUSTRY REPORT

SASKATCHEWAN’S POTASH FUTURE REMAINS BRIGHT JONATHAN HAMELIN

Around the world, there continues to be a high demand for potash.

Back at home in Saskatchewan, the province has the ability to meet this demand – and then some.

The valuable mineral can be used as a crop nutrient to strengthen plant stalks and roots, enhance water retention and helps crops fight disease and injury; to add flavour, colour and texture to food; and as part of the process used to make industrials goods. Saskatchewan is the largest potash producer in the world, typically accounting for approximately 30 per cent of world production.

“The potash reserves in Saskatchewan are massive,” said Cory Hughes, executive director of mineral policy for the Ministry of the Economy. “By conservative estimates, Saskatchewan could supply world demand at current levels for several hundred years.”

Potash production in Saskatchewan has been continuous since 1962, when Mosaic completed its K-1 mine at Esterhazy. In 2015, Saskatchewan produced 18.2 million tonnes with a sales value of $6.1 billion.

As the saying goes, “You have to spend money to make money,” and the industry’s willingness to invest its time and resources into projects has led to continued growth.

Since 2005, industry has committed over $20 billion for the development of expansions and new potash mines in Saskatchewan. According to the Fraser Institute’s 2015 Survey of Mining Companies, which evaluates 109 jurisdictions, Saskatchewan’s mining investment attractiveness ranks first in Canada and second worldwide.

“We have been very successful over the years at attracting investment,” Hughes said. “This has allowed us to increase our capacity and develop more projects. The mining expansions, many of which have been completed, are expected to increase the province’s potash production capacity by about 70 per cent.”

There are many potash projects in the province at various stages of

development.

PotashCorp has nearly completed the expansions at its Rocanville mine, located 250 kilometres east of Regina near the Manitoba border. The mine has been undergoing an approximately $3 billion expansion since 2008. The company said this expansion will double its production capacity (increasing from 2.7 million tonnes annually to 5.7 million tonnes) and make it one of the biggest underground mines – potash or otherwise – in the world.

K+S Potash Canada continues with its Legacy Project potash mine and production facility adjacent to Belle Plaine. It’s the first new Greenfield potash mine built in Saskatchewan in 45 years.

While the solution mine’s first commercial production has been delayed until the second quarter of 2017 (from the end of 2016 as originally scheduled), K+S is still expecting to reach its target production capacity of two million tonnes at the end of 2017.

Further down the line, BHP Billiton is hoping to bring its Jansen mine into production during the decade following 2020. Located approximately 140 kilometres east of Saskatoon, Jansen is expected to be one of the world’s largest potash mines, with a projected annual capacity of about eight million tonnes — roughly 15 per cent of total global supply.

“All of our mines have gone through at least one expansion in the past decade and there are several other projects at different stages of evaluation, including several through the environmental assessment process,” Hughes said. “The market will determine what moves forward in the future here.”

Hughes said that one thing sure to continue moving forward is innovation in the potash industry.

“Innovation really was the big reason for the development of the industry,” Hughes explained. “One of the big breakthroughs for the industry was the creation of the Blairmore Ring, which allowed potash shafts to be successfully sunk through the challenging Blairmore Formation.

“Our industry is continuing to be innovative in finding ways to mine what previously couldn’t be mined. Some companies are

In 2015, 18.2 million tonnes of potash were produced in Saskatchewan in 2015, with a sales value of $6.1 billion.

PH OTO: AG RI U M

“Our industry is continuing to be innovative in finding ways to mine what previously couldn’t be mined. Some companies are exploring horizontal solution mining, a method for recovering a target material from an at-depth soluble target layer. Others are looking into retreat mining, which involves excavating the edges of the ore body and then working backward systematically, avoiding the cost of maintaining mined-out areas.”

World-class research and development work is being led by the Universities of Saskatchewan and Regina, the Saskatchewan Research Council (SRC), the International Minerals Innovation Institute and the Canadian Light Source Synchrotron, said Hughes. The SRC is also home to the Geoanalytical Laboratories, one of the world’s cont’d on next page

POTASH IN OUR PROVINCE 2016 EDITOR

JEANNIE ARMSTRONG

WRITERS

JENNIFER JACOBY-SMITH WENDY LIVINGSTONE JONATHAN HAMELIN ASHLEIGH MATTERN PAT REDIGER CAROL TODD

DESIGNER

LORRAINE CHARTIER

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POTASHCORP, AGRIUM SAY “I DO” Merger will create a potash industry giant

CAROL TODD

The Potash Corporation of Saskatchewan (PotashCorp) and Agrium Inc. have merged into what one industry analyst has called a Canadian champion on the world stage. By some estimations, the deal is worth US $36 billion.

Word of the talks was reported earlier this month, with both parties saying they were considering what a PotashCorp media release termed a “merger of equals.”

Steve Hansen, equity analyst with investment firm Raymond James, says the merger results in an entity that will be the global leader in both wholesale fertilizer production and agriculture retail.

“Depending on your vantage point, there’s some good rationale around putting the two companies together. Certainly there’s a lot of synergy between the two parties,” he said.

PotashCorp is the world’s largest fertilizer company by capacity, while Calgary-based Agrium operates the largest global directto-farmer agricultural retail operation. PotashCorp, which has its headquarters in Saskatoon, was formed by the Saskatchewan

POTASH IN OUR PROVINCE

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You think about the context of creating a real Canadian champion on the global stage as opposed to some foreign entity coming in with less appreciation for the Canadian environment.” government in 1975 as a Crown corporation and was privatized in 1989. Agrium got its roots in 1931, when the Consolidated Mining and Smelting Company (later known as Teck) founded its fertilizer division. The name of the company was changed to Agrium in 1995.

Hansen says the new company will be able, among other things, to fend off any takeover attempts, like the failed attempt by BHP Billiton to take over PotashCorp

POTASH FUTURE BRIGHT

in 2010. “You think about the context of creating a real Canadian champion on the global stage as opposed to some foreign entity coming in with less appreciation for the Canadian environment,” Hansen said.

Hansen believes the merger will have fewer benefits for Agrium than for its new partner. “From PotashCorp’s standpoint, it does make a bit of sense in so far as they are looking for downstream distribution for their product, or looking for a home for their prod-

uct in a market that is heavy on supply and that would make a lot of sense,” he said.

Not so for the Agrium side of the deal. “It really is perplexing in that it is counterintuitive or incongruent with their strategy around bolstering their retail business and focusing their efforts on retail. The idea of going upstream to wholesale is perplexing,” he said.

Hansen believes that the deal is more likely to be approved by government than the BHP effort,

which was blocked by Ottawa because it didn’t adequately benefit Canada. “The BHP strategy was very blunt. They came in and said they were going to take over. They made very few assurances to the local government,” he said. Saskatchewan Premier Brad Wall has been quoted as saying he believes a potential merger of PotashCorp and Agrium could benefit the province. The new company’s head office will be based in Saskatoon, with a corporate office in Calgary.

7 THINGS TO KNOW ABOUT SASKATCHEWAN POTASH 1. WORLD’S TOP PRODUCER

5. VALUABLE COMMODITY

Saskatchewan is the world’s largest potash producer.

28%

18.2 MILLION

of the world’s total potash production was mined in Saskatchewan.*

2. ONLY IN SASKATCHEWAN All of the potash mines currently in operation in Canada are located in Saskatchewan.*

3. EXPORT LEADER In a comparison of Saskatchewan exports in 2015, potash ranked second only to petroleum products.

TONNES

of potash was produced in Saskatchewan, with a sales value of

$6.1 BILLION a year-over-year increase of over $1 billion.

In terms of produced mineral value in Canada, potash was second only to gold in 2015. Potash remained the top-ranked non-metallic commodity in Canada by value.***

6. GLOBAL DEMAND 45%

of Saskatchewan potash exports go to the U.S.

Potash exports totalled

$6.6 BILLION in 2015, up from $5 billion in 2014.***

4. MAKE IT GROW!

The remaining exports are sold mainly to China, India, Latin America and Asia.

More than 180 countries use potash, but only 11 countries produce significant amounts.****

Different countries use potash for different crops. In the U.S., almost half of all potash fertilizer is applied to corn.

The K + S solution mine near Bethune is entering the commissioning phase. The first tonne of potash is slated to be produced in the second quarter of 2017. PHOT O: K + S C A NA DA

40%

cont’d from previous page largest exploration sample processing labs, with expertise in potash, uranium and diamonds.

The potash industry in Saskatchewan employs over 5,100 people, while contributing to the livelihood of thousands more. It also maintains high standards for environment, sustainable development and safety. Saskatchewan has a strategic central location with excellent transportation services to North American and offshore markets.

All in all, Hughes said there

IN CHINA

are a lot of reasons to be optimistic about the potash industry moving forward.

“It’s obviously a tough time for market conditions, but the industry remains optimistic,” he said. “The long range fundamentals for potash are still strong.

With growing world income levels and population, there are more demands for higher protein foods. We anticipate potash demand will continue to grow.

“Through it all, Saskatchewan will maintain its position as the leading producer of potash.”

of potash is applied to fruits and vegetables;

7. FUTURE OPTIMISM 21%

is applied to rice.

IN BRAZIL

soybean, sugar cane and corn crops recieve

70%

of the country’s potash imports.

Almost half of all known potash reserves in the world are located in Saskatchewan. Saskatchewan’s potash reserves could supply world demand at current levels for several hundred years. There are currently 11 new potash projects in various stages of development, according to the 2016 Resource Map of Saskatchewan.*

Sources: *Saskatchewan Ministry of the Economy **Industry Canada ***Natural Resources Canada ****PotashCorp

We’re building a Legacy.

K+S Potash Canada has seen tremendous growth since work on the Legacy Project began near Bethune, SK. There has been incredible progress both on-site and off-site, and we are excited to carry this momentum forward. We are looking forward to a long future operating and investing in the province of Saskatchewan.

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PotashCorp teams test their mettle at mine rescue competition PotashCorp knows it takes teamwork, training and skill to create a top-notch Emergency Response or Mine Rescue team.

And this year it was exceptionally proud when teams from two of its mines – Lanigan and Patience Lake – earned top honours at the 48th Annual Saskatchewan Mining Association Emergency Response/Mine Rescue Skills Competition, held at Saskatoon’s Prairieland Park at the beginning of June.

The competition drew 18 teams from mines across the province, competing in either the surface Emergency Response or underground Mine Rescue category.

While parts of the competition involve written tests, a significant portion sees the teams demonstrating their practical skills in several specialized disciplines, including firefighting and first aid. Another portion of the event evaluates how the teams respond to a simulated mine emergency that requires a variety of skills to safely navigate.

“This competition allows us to

showcase our skills and put them to use in a competitive setting.

And the public is able to come out and see just exactly what a mine rescue team does,” said Jason Hanley from the Patience Lake team.

For example, in the first aid portion of the event, teams are judged on how they respond to an incident in which they encounter workers suffering various injuries. They have 20 minutes to work and are judged on how well they assess injuries and administer first aid treatment, as well as how effectively they communicate and work as a team. In the mock mine problem, teams enter the “mine” and attempt to locate and rescue missing workers, extinguish and control fires, examine the mine for dangerous gases and “restore the mine to its original safe condition,” according to the competition guidelines.

Scoresheets for this test are several pages long, evaluating all aspects of the team’s response, from its team discipline (following Captain and team protocol) to whether it followed proper procedure (were hazardous areas fenced off?).

“This competition is really good for team-building because each problem is quite involved. There’s a lot of details, there’s a lot of

Team members from PotashCorp’s Patience Lake mine readying fire extinguishers. PHOT O: P O TAS HC O R P

The team from PotashCorp’s Cory mine competes at the Saskatchewan Mining Association’s emergency response/mine rescue competition. PH OTO: POTA SHCOR P pretty critical skills that need to be performed,” said Jeremy Hiebert from the Patience Lake team. “The only way to really succeed is for everyone to know their job and to do it well.”

On the scene at this year’s event in Saskatoon, it’s clear that teams have their game faces on. While friends and family have come out to watch, teams are not allowed to communicate with anyone outside their group, to ensure no one gets advance knowledge of an upcoming event. Infractions result in significant scoring penalties.

Outside at the firefighting venue, a few dozen spectators on temporary bleachers watch as one team after another readies, or “charges”, its fire extinguishers with dry chemical, then attempt to put out a series of three fires. Strategies differ, with teams deploying their members alone or in groups of two or three. It’s a windy day and the flames are stubborn. When one team manages to subdue all three fires before its extinguishers are exhausted, there’s appreciative applause from the crowd.

After scores from each test are tallied at the end of the day,

Together We Grow PLAINS CREE

DENE

awards are presented at an evening banquet to the top finishers in each discipline – and to the overall winners.

“Thanks to these teams, our employees can go to work each day knowing there are trained, knowledgeable responders on site if ever needed.”

Mark Fracchia President, PCS Potash This year, the Overall Underground Winner was PotashCorp Lanigan. “It always starts with the group of people we have,” said Mark Nivon from the team.

“We’ve got a huge commitment to the process here.”

PotashCorp Patience Lake was the Overall Surface Winner, the ninth time in 12 years it has

achieved first place.

PotashCorp’s Allan, Cory, and Rocanville mines also participated in the competition in 2016; each of the sites has won the overall title at least once since 2003.

Mike Nelson, who was on the Rocanville team in 2016 and in 2014 when it won the overall title, says it’s satisfying to work together and do well at the competition, knowing that it represents hard work and support from the entire site.

“It’s definitely a sense of pride and a sense of accomplishment.”

“The teams are an important part of PotashCorp’s operations,” says Mark Fracchia, President of PCS Potash, which includes the company’s five Saskatchewan mines.

“Thanks to these teams, our employees can go to work each day knowing there are trained, knowledgeable responders on site if ever needed.

“We are grateful for their dedication and commitment to emergency response and for the high level of expertise they have acquired.”

THIS STORY WAS PROVIDED BY POTASHCORP FOR COMMERCIAL PURPOSES.

We believe that strong communities grow from strong roots.

At PotashCorp, we’re helping to nourish the potential in our communities by investing in education and training, apprenticeship programs and local partnerships that can open doors for more Aboriginal people to pursue careers with our company.

By encouraging people to reach for the sky, we can see a bright future for us all. Because together, we grow.

PotashCorp.com

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CP Rail Belle Plaine Spur North Qu’Appelle Valley Excavation Pictured is one of many deep excavations to achieve the final rail grade on the north side of the Qu’Appelle Valley. A combination of Caterpillar 631 motorscrapers and 772 mining trucks were used in the 35-metre-deep excavation. S U P P L I E D P H O TO

KPCL is a leader in the earth-moving industry JONATHAN HAMELIN POSTMEDIA CONTENT WORKS

For Kelly Panteluk Construction Ltd. (KPCL), it all began in 1953 with one man and a bulldozer.

That man was Walter Panteluk, an established worker in the industry who had a vision for a company that could literally help build Saskatchewan.

“At that time, Walter was well-known and well-respected by all the earth-working companies in the province. His name was Walter, but everyone called him ‘Jumbo,’ ” said Scott Manson, chief operating officer for KPCL. “He was a massive man with an even bigger heart.”

In the early days, Walter focused on building dugouts. Eventually, he brought his brothers on board and the company gained a reputation as one of the better road builders in the province. In 1985, Walter’s son Kelly began operating the company and has guided its continued growth ever since.

Today, KPCL is one of the largest privately owned heavy equipment earth moving and underground services company in Saskatchewan. Operating out of Estevan and serving clients throughout the Prairie Provinces, the company moves in excess of eight million cubic metres of dirt per year and boasts annual revenue of around $100 million. The company employs approximately 300 people during peak season.

As Manson explained, the key to the company’s growth has been approaching things one cubic metre of dirt at a time – maintaining the same standard of quality regardless of the high volume of jobs.

“Everybody can move a cu-

bic metre of dirt, but it comes down to how efficient and effective you can be while doing it,” said Manson. “With a modern, well-maintained fleet of over 250 pieces of heavy construction equipment, we pride ourselves on helping customers solve difficult construction problems. A significant portion of our business is focused on the completion of large, technical projects that involve challenging soil conditions and intricate earth structures.”

KPCL’s capabilities enable it to tackle multiple projects, including: mine development and expansion; oil field builds, reclamations and contaminant solutions; power generation structures; transportation infrastructure; and water control structures.

The company was the prime contractor for the Global Transportation Hub and logistics centre project, which is now an international port to receive and ship goods. The scope of work included rough grading 1,200 acres, installing water-control structures and drainage channels, and preparing roadways integral to the hub. To complete the job, the company used GPS Grade Control finishing equipment, which Manson said highlights its innovation.

“This technology allows us to create models of whatever we’re building,” he said. “In the 3D space, the operator can view how much fill he’s got to take or cuts he needs to take to finish off the job to the tolerance that the engineer is looking for.”

KPCL has also been heavily involved in the potash industry over the years. It has focused largely on constructing salt evaporation ponds — shallow artificial ponds

CP Rail Belle Plaine Spur Installation of Wick Drains Vertical foundation drains (pictured above) were installed to a depth of 31 metres near the bridge abutments for the Qu’Appelle River crossing to allow for accelerated construction of the earth embankment for the rail spur. Approximately 1.9 million lineal metres of drain material was installed over 69,000 individual drains. S U P P L I E D P H O TO

CP Rail Belle Plaine Spur Multi-plate Tunnel An 81.6-metre-long by 9.7-metre-diameter corrugated steel pipe tunnel was constructed to allow trains to pass through. The multi-plate tunnel allows municipal traffic and a local pipeline to safely cross above the rail on the south side of the Qu’Appelle Valley. S U PPLI ED P HOTO designed to extract salts from sea water or other brines. KPCL has worked on projects with Agrium, K+S Potash Canada, The Mosaic Company, PotashCorp and many others.

Kelly Panteluk noted that safety has always been at the forefront of the potash industry, and KPCL’s commitment to safety has made the company an attractive suitor. The company boasts a fully integrated health, safety and environmental program.

“Health and safety is our first thought before we undertake any work task,” said Panteluk.

“Doing the job right within a safe working culture ensures our

employees remain injury free on the job.”

Currently, KPCL is taking part in its largest project to date: the CP Rail Belle Plaine Railway Spur.

The Canadian Pacific Railway Company is constructing 30.5 kilometers of new railway from K+S Potash Canada’s Legacy Project mine located near Findlater to the existing Kalium Spur near Belle Plaine to get the product to market. KPCL was chosen as the general contractor to manage and construct the new rail grade, which includes a 108-metre-long steel girder and precast span bridge to cross the Qu’Appelle River and a multi-plate steel tun-

Global Transportation Hub (GTH) and Logistics Centre The scope of work at the GTH included rough grading 1,200 acres, installing water-control structures and drainage channels, and preparing roadways integral to the hub. GPS Grade Control finishing equipment, as pictured above, was used to achieve the specified fine tolerances of +/40 mm over very large rough graded areas. SU PPL I ED P HOT O

nel structure to carry municipal traffic over the railway spur.

“We are going to end up moving approximately 12 million cubic metres of dirt throughout this project. To put this into perspective, your average highway job may run you a million and a half cubic metres,” explained Manson. “This is the type of project you have an opportunity to work on once or twice in a lifetime.”

It’s clear that KPCL has come a long way from one man with a bulldozer building dugouts. Mason feels that the company has truly grown with the province.

“The key to our success has been our ability to foresee what’s happening in the province, anticipate changes, and have the capacity and resources available to jump on those opportunities,” he said.

Along the way, KPCL has not only been focused on helping to grow the province’s infrastructure, but the community as well.

For the 2016 Saskatchewan Summer Games in Estevan, KPCL donated about $200,000 of work to bring the track up to speed.

Earlier this year, KPCL donated $450,000 to the Children’s Hospital of Saskatchewan, which will assist in benefitting families from across the province by providing increased access to healthcare services.

“Our family has always had a history of giving back to the community,” said Panteluk. “We care about the province and want to help the province succeed. Part of that is having the facilities and services in place that keep people in the province.”

THIS STORY WAS PROVIDED BY KPCL FOR COMMERCIAL PURPOSES.

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KELLY PANTELUK CONSTRUCTION LTD. Box 190, Estevan, SK S4A 2A3

306.634.2166

www.kpcldirtmovers.com

Building Today for Tomorrow Heavy Construction Since 1953 Mining Development & Expansions Industrial Land Developments Transportation Infrastructure Underground Services Water Control Works Working Safely Together to Meet Our Commitments ISNetworld® Member

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POTASH IN OUR PROVINCE JEANNIE ARMSTRONG

Coming off a year of volatility in the potash industry, Canpotex Limited, Canada’s premier potash exporter, is looking forward to 2017 with cautious optimism.

Canpotex is the world’s leading potash exporter, selling and delivering over 20 grades of high-quality potash exclusively into overseas markets on behalf of its three shareholders: Potash Corporation of Saskatchewan Inc., The Mosaic Company and Agrium Inc. Ken Seitz, President and CEO of Canpotex, says the organization is on track to ship around 10 million tonnes of potash to overseas customers this year, slightly less than the previous year.

An oversupply of potash contributed to a precipitous drop in potash prices in 2016, which Seitz attributes to “new production that has come on stream and some new entrants into the market.”

Seitz added, “We also started the year with some higher inventory levels among many of our customers. They felt quite comfortable through a good portion of 2016, making purchasing somewhat discretionary through that period.”

As prices dropped, competition in the marketplace continued to intensify, added Seitz. “We’ve seen some fierce competition from places where currencies have devalued and therefore brought down domestic costs of production. We’ve seen that evolve over the year.”

Looking ahead to 2017, Seitz sees cause for optimism. “We continue to see growth on the demand side, with average annual growth rates of two to three per cent for potash around the planet. We continue to see strengthening on the demand side, complemented by countries like Brazil, where soybean prices are good. The currency there has been devalued,

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CANPOTEX TAKES FISCALLY RESPONSIBLE APPROACH TO GROWTH product,” said Seitz.

“Canpotex is a vital link in the pursuit of global food security, inspiring farmers in our export markets to grow and help nourish the world.”

Contributing to the steady growth in demand for potash is an increase in arable land in a number of countries, including Brazil. “In Brazil, given the nature of their soil, the Brazilians need a lot of potash to achieve food security and increase exports. It all lends to this two to three per cent average annual growth rate that we’re seeing in our export markets,” said Seitz.

Other parts of the world are attempting to boost food production without the benefit of balanced fertilization. “They’re not achieving the right mix from an economic point of view of producing food and replenishing soil nutrients. We at Canpotex are always trying to educate and help farmers in our export markets to understand the benefits of balanced fertilization. There’s opportunity there to increase the demand for potash just by having farmers understand the benefits of balanced fertilization,” said Seitz.

Ultimately, said Seitz, the growing demand for potash will necessitate an increase in production.

“The demand line is sloping up and to the right. We know that is going to continue and we know that it’s going to require more potash. That is where we get pretty excited about the fundamentals.”

It’s important to take a longterm view, said Seitz. “Canpotex has been doing this for over 40 years. Looking forward, there are potash resources in this province with a lifespan that extends thousands of years, so we’re going to be doing this for a very long time. We certainly have work to do navigating these near-term headwinds, but we do take a long-term view and that’s where we get quite excited.”

Canpotex ensures the efficiency of its supply chain by investing in and maintaining a fleet of 5,700 specialized rail cars. PH OTO: CAN POTE X

at all of that information analytically and critically… and came to the conclusion that we have better options than deploying $775 million towards a large capital project in Prince Rupert,” said Seitz.

As one of Canada’s largest exporters, and the largest mineral exporter in the country, it is imperative for Canpotex to operate in the most efficient manner possible, added Seitz. “While I feel quite comfortable that Canpotex is a highly competitive organization as it relates to our costs, we can always do better. We will continue to scrutinize all aspects of our operation and ensure that we’re highly efficient.

“Moving 10 to 11 million tonnes of potash off the land-locked prairies is a monumental task, yet we do it. We do it with our 5,700 rail cars, we do it with our three port facilities, and we do it with our 235 vessel voyages a year. We just have to continue to ensure we’re competitive.”

In its 44-year history, Canpotex has succeeded in growing and

maintaining a loyal customer base that spans the globe. “We operate in multiple foreign jurisdictions, with multiple languages and cultural differences. We have a highly experienced team that goes into those parts of the world and can be clear in our communications. We work very hard to ensure there’s a clear understanding between the customers and us. Once there is, they can rest easy, knowing that Canpotex is going to do what we say we are doing to do. That’s not true across our industry. It’s a distinct competitive advantage that we need to maintain,” said Seitz.

Global customers appreciate the high-quality product that comes out of Saskatchewan, he adds.

“You can go to other parts of the world where people are selling potash that is spiked with groundup bricks for example. When a customer of Canpotex looks at our product, they can see that it’s a beautiful Canadian high-quality product. That’s another competitive advantage for us, and given the quality of our shareholders, it’s

one that we will continue to have.”

Seitz anticipates the potash industry will face growing complexity in the future, but feels Canpotex is well equipped to prevail over those challenges.

“Our world is becoming more complex – whether it’s competition, foreign exchange, changing commodity prices, the flattening Chinese economy. Any organization that wants to compete in this environment needs to meet that complexity with growing sophistication. While we have a highly sophisticated organization here at Canpotex, there’s always more that can be done,” said Seitz.

“We want to ensure that our decisions are always being made with the best available information, which means critically looking at our intelligence in the market and the data we have available to us… making sure that we have the skills to properly analyze that intelligence and ensuring that we’re making the best decisions for the benefit of our shareholders at all time.”

6,000 KILOMETRES

Canpotex President & CEO Ken Seitz PH OTO: C AN POT EX

which is good for the farmer, given they are an exporting nation. India has had some strong monsoons.

So we have some parts of the world where demand for potash is strong.”

Several supply-side events in 2016 are also reducing existing stockpiles of potash, he adds, citing the closure of PotashCorp’s New Brunswick potash mine, the six-month hiatus at Mosaic’s Colonsay operations, and technical issues at mines operated by Russian and Belarusian producers. “With reduced supply, we anticipate an improved supplydemand balance than where we were at the start of this year,” said Seitz.

While the industry will continue to face turbulence in the short term, the long-term outlook for Saskatchewan potash is reassuring.

“The United Nations is forecasting that food demand is going to grow by 70 per cent by the year 2050. We look at our own projections and continue to see two to three per cent average annual growth in the demand for our own

Moving 10 to 11 million tonnes of potash off the land-locked prairies is a monumental task, yet we do it. We do it with our 5,700 rail cars, we do it with our three port facilities, and we do it with our 235 vessel voyages a year. We just have to continue to ensure we’re competitive.”

Canpotex railcars cover a lot of ground – from potash mines in Saskatchewan to port facilities on Canada’s West and East Coasts. Our Railcar Maintenance Facility in Lanigan allows us to perform repairs and regular maintenance on our custom-built railcars, keeping Saskatchewan potash moving and farmers around the world growing.

While optimistic about the future, Canpotex continues to take a cautious and responsible approach towards growth. That cautious attitude was reflected in the announcement made on June 17 that Canpotex would not be proceeding with its proposed $775 million potash export terminal in Prince Rupert, B.C., despite having made a substantial investment during the preliminary planning phases.

“Ultimately, we came to that conclusion, given the way we see the demand line growing in our business and given the highly efficient performance of our current port capacity, including the expansions we completed at our U.S. port facility. A new piece of information for us was the closure of PotashCorp’s New Brunswick operations, which liberated port capacity in Saint John. We looked

Our Cars Carry More Than Potash While every Canpotex railcar carries potash from Saskatchewan to port, they also carry the best in Canadian industry and innovation. Working with our partners in transportation, manufacturing and trade, we’re creating value for Saskatchewan resources and creating jobs across our country.

SASK ATO O N SI N GAP O RE VAN CO UVER TO KYO SHAN G HAI

Canpotex exports Saskatchewan potash produced by its three shareholders - PotashCorp, Mosaic and Agrium - to overseas customers from port facilities in Vancouver, B.C., Portland, Oregon and St. John, New Brunswick. P H O TO: CA N POTE X

www.canpotex.com

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It’s been years in the making, but PotashCorp has nearly completed the $3 billion expansion of its Rocanville potash mine.

The final phase of the project, which began in 2008, is scheduled to be completed by the end of November. The expansion will double the mine’s operating capability, increasing it from 2.7 million tonnes in 2015 to 5.7 million tonnes when it’s ramped up in 2017. The new capacity will make it one of the biggest underground mines – potash or otherwise – in the world.

“At PotashCorp, all of our projects are world class, but the complexity of renovations taking place at Rocanville required a very high level of skill,” said Larry Long, general manager of the mine, located about 230 kilometres east of Regina near the Manitoba border. “Everyone involved in this project, from our contractors to the staff at Rocanville, deserves a lot of credit for their perseverance.”

Long said that sense of determination was especially needed during construction of the 1,123-metre service shaft at Scissors Creek, located 16 kilometres west of the main mine site.

The shaft will move workers and equipment underground to mine a new area of the Rocanville potash deposit.

Excavation for the shaft began in 2010 and it took workers until June 2015 to reach the underground mine workings. One of the challenges to overcome while sinking the shaft was the Blairmore Formation, a water-bearing feature in the geology that overlays all Saskatchewan potash mines. To successfully sink a mine shaft through the Blairmore, the water present must be frozen to stop it from flowing into the shaft.

“There were a lot of technical hurdles,” Long said. “Shaft sinking is something that doesn’t happen

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SOFTENING WATER Potassium chloride is often used instead of sodium chloride in ion exchange water softeners. In this process, brine washes over resin in the softener unit and the hard mineral ions in the water, such as calcium and magnesium, are replaced with the sodium or potassium. Potassium chloride may be a better choice than sodium chloride for people who are trying to reduce their sodium intake and those who are concerned about the environment, because potassium chloride is deemed a healthy nutrient for both humans and plants.

A $3 billion expansion will double the operating capability of PotashCorp’s Rocanville potash mine, located 230 km east of Regina.

P HOT O: P OTASHCOR P

ROCANVILLE MINE EXPANSION NEARS COMPLETION Prior to Scissors Creek, it had been more than 35 years since a new potash shaft was sunk in Saskatchewan.

Staffing levels at the Rocanville mine have increased from 325 to nearly 800 people. During construction, PotashCorp had more than 1,000 contractors on site. PH OTO: POTAS H CORP

all the time and there are not a lot of people with that expertise, so that was the single biggest challenge.”

Prior to Scissors Creek, it had been more than 35 years since a new potash shaft was sunk in Saskatchewan; the last one was a service shaft in Lanigan in 1979.

Despite the challenges, Long said the increased capacity provided by the new shaft certainly justifies the hard work. The old service

shaft was converted to a second production shaft to bring ore above ground.

“Potash mines are limited by the amount of ore they can get to the surface, but these shafts will essentially double our capability,” Long said.

The Rocanville expansion also includes a 500,000-tonne storage facility and a new mill. Long explained that the mine will operate using two

mills: the original one at 1,100 tonnes per hour and the new one at 1,300 tonnes per hour once it’s fully commissioned.

The expansions have also increased employment at the mine. During peak construction periods, PotashCorp had more than 1,000 contractors on the site.

Long said it was great to make a positive impact on the province’s economy, through the jobs created during the expansion and those needed to staff the larger mine.

“We more than doubled the workforce, so there’s an ongoing benefit from those salaries,” he said. “Our staff count has grown to nearly 800 people, compared to 325 when we started. The other

ongoing economic benefits are obviously the services and supplies that we’ll need in the decades to come because of the increase in the size of the mine.”

As the expansion nears completion, Long said the focus is now on finishing the commissioning process.

“We have the skips and hoisting system that moves the rock from underground to surface, and underground you have the bins and loadout system that actually delivers that rock to the skips. The technical part is getting those two systems communicating with each other.

“We have to make sure the timing is as close as possible, so the material goes as fast and as efficiently as possible.”

PotashCorp has been willing to spend time and resources on the Rocanville expansion because the ore body is very favourable for low cost and efficient mining, Long said.

“I think people look at the potash ore bodies as being fairly homogenous, but actually they’re not,” he said. “There are variations in the deposits. At Rocanville, you’re going to invest a lot of money in the operations and in the end we will be able to produce significant amounts of potash at a low cost.”

Every plant and animal cell on earth requires potassium ‒ an important component of potash ‒ to function. Plants absorb potassium, depleting it from the soil, and potash fertilizers (in the form of potassium carbonate, or K2CO3) are used to replace it. But it’s not just agriculture that benefits from potassium’s unique qualities. Other common compounds of potassium, including potassium chloride, (KCL), potassium hydroxide (KOH), potassium superoxide (KO2), and potassium nitrate (KNO3), have important applications for everyday use.

FROM FIREWORKS TO FUNERALS CREMATION A method of cremation that uses less energy than the traditional combustion method – and therefore is considered more ecofriendly – utilizes a potassium hydroxide solution to reduce the body to bone fragments.

The body is placed into a pressurized stainless steel cremation chamber, and the temperature is raised to 350°F. The water, alkali, heat and pressure circulated over the body complete the cremation process. At least one Saskatchewan funeral home, Gray’s Funeral Chapel in Prince Albert, uses this method.

SOAP MAKING Potassium hydroxide, commonly called caustic potash, is used in making soaps and cleaners.

It is a strong base and neutralizes the fatty acids in the oils used, a process called saponification, or “soap making.”

If too little potassium hydroxide is used to saponify all the acids in liquid soap, the soap will be cloudy. Potassium hydroxide flakes can be purchased for making liquid soaps at home.

Because of the product’s extremely caustic nature, rubber gloves must be worn when handling it.

LIGHTING AND DOUSING FIRES Various forms of potassium can be used either to ignite or to extinguish fires. Potassium nitrate is used along with sulphur and charcoal in the manufacture of gunpowder (found in both firearms and fireworks) and potassium chlorate helps to make oxygen available to sustain the flame on the tip of a match. To extinguish flammable liquid fires at industrial and commercial properties, dry fire extinguishers containing potassium bicarbonate are often kept on hand. Potassium-acetate-based wet chemical extinguishers are often used for class K fires, which include those that occur in cooking oils.

TREATING DISEASE Potassium is critical to the proper functioning of nerve and muscles cells, particularly heart muscle cells.

A deficiency of potassium in the human body is known as hypokalemia, and it can be treated with potassium chloride, a salt composed of potassium and chloride. A diet rich in the appropriate vegetables is usually the best way of preventing and treating the disease, but, in severe cases, potassium chloride can be quickly absorbed by the body when ingested as a supplement.

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POTASH IN OUR PROVINCE JENNIFER JACOBY-SMITH

For a fourth consecutive year, Agrium has been named one of Canada’s Top Employers for Young People by MediaCorp. The award recognizes the mining company’s efforts to empower young people to grow and achieve their professional goals and aspirations.

Michael Webb, senior vicepresident of human resources at Agrium says it all started with the formation of their Young Professionals Network.

Agrium set aside funding to create the network in order to hear directly from young employees about what’s important to them.

The network now has around 30 members.

The group identified several areas that were important to young professionals at Agrium, among them was wellness and the

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INVESTING IN THE FUTURE Agrium recognized for developing young employees need for a work-life balance.

“We established a wellness centre that has everything from yoga and exercise to nutrition and stress management,” says Webb.

Another part of that important work-life balance for young people is finding a way to give back to the community.

In Calgary, Agrium has a program called Corporate Challenge.

The participants are mostly young professionals who raise money for charity through various fundraisers throughout the year. The company boasts one of the leading United Way campaigns in the city.

“Individuals have the ability to donate their time and donate money if they so choose. Lots of times with young folks they are more keen on donating their time.

We give them those outlets to do that,” explains Webb.

Opportunities for career devel-

opment were also identified as being key for young employees at Agrium.

To facilitate transparency the company lists all positions currently being recruited. This allows individuals to plot future career steps. And there are many options to choose from within Agrium – from mining positions to research labs to financial engineering.

“Hopefully, these individuals feel they can move around if they want to have multiple careers within one company. If they want to have multiple careers outside of one company they can do it. At least we give them that option to have multiple careers within Agrium,” says Webb.

Continuing their career development may mean taking further education. Tuition reimbursement was another area the Young Professionals Network identi-

Agrium has been named one of Canada’s Top Employers for Young People by MediaCorp thanks to the company’s efforts to empower young employees through their Young Professionals Network. PH OTOS : AG RI U M

fied as something they valued. So the company created what Webb describes as a “very generous” reimbursement program.

All of these initiatives have helped Agrium to position itself competitively when it comes to luring the best and brightest prospective employees.

Webb says Agrium competes for employees with companies from Wall Street, Silicon Valley and the like.

“Agriculture today is not your grandfather’s agriculture. It is sophisticated, high-tech, cutting edge stuff. The farmers that we talk to are some of the most sophisticated business people you will ever find,” says Webb.

A career in agriculture can be very rewarding. Helping to feed the world is no small task and it takes the very best people Agrium can find.

“We need really talented people who are on the ball. We also work in an industry that has a lot of hazards and we need people that are smart, switched on and take safety very seriously,” Webb explains.

Mistakes can mean people get hurt, or a farmer’s livelihood is destroyed, or local and global economies are impacted.

“If we don’t do our job well – which is grow food for a growing population – the consequences of there not being enough food goes without saying,” notes Webb.

Further, no matter the advances in technology, the company’s best assets are the people they invest in.

“At the end of the day you can have the best tools, you can have the best technology, you can have the best physical assets in the world,” says Webb, “but if you don’t have the best people operating them, people are going to get hurt, mistakes are going to get made, and eventually you’re company will not be successful.”

Webb acknowledges he may never see the benefit of some of the initiatives the company has introduced for young people, but Agrium is focussed on long term planning. “We’re an organization that has been around for quite some time and we want to be around for a lot longer. And the only way that we’re going to do that is to invest in our young people.”

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MINING THE GAP: Association wants to see diversified work force

Lynn is deputy start-up manager at K+S Potash Canada’s Legacy Project mine site near Bethune.

PH OTO: K+ S POTA SH CA NA DA

ASHLEIGH MATTERN

Geoscientist Nancy Komperdo has worked at remote locations where she was the only woman at a camp.

“If you’re a single female working in a remote location with 20 other people, that can be a very different environment than working in Saskatoon in an office,” said Komperdo, senior geoscientist at BHP Billiton Canada, and co-chair of Women in Mining/Women in Nuclear Saskatchewan (WIM/ WiN-SK).

A recent Stats Canada labour survey showed that women make up 20 per cent of the mining work force across Canada, but in Saskatchewan women only represent 11 per cent.

Komperdo had no issues in her experience, but she has heard stories of discrimination, which is why she says associations like WIM/WiN-SK are important.

“The industry is a wonderful place to work, but there are systemic issues we’re working our way through,” she said. “Some women face struggles coming back from maternity leave... they feel it reflects poorly on their ability to perform. Work-life balance is an issue, like any other industry out there.”

The association is an opportu-

nity to build networks, meet mentors, find support and celebrate successes. It’s also free to join and open to anyone – not just women, and not just people in the mining or nuclear industries.

“It’s not just about women. It can be about ethnicity or sexual orientation. There’s systemic issues in society that exist in the mining industry as well.”

In addition to providing support to members, WIM/WiN-SK aims to promote the industry as a great

Studies across the world show that diversified work forces drive innovation.”

NA N C Y KO M PE R D O, C o - c h a i r, Wo m e n i n M i n i n g / Wo m e n i n Nu c l e a r S a s k a tc h e w a n

career choice and to educate the public.

“People think you work in the mining industry, therefore you’re a coal miner – you’re dirty, crouched down – but that’s so far from the truth of what the industry is today.”

Another misconception is that the industry is unsafe, but the Saskatchewan Mining Association says mining is one of the safest industries in the province, reporting fewer injuries than workers at construction sites, or even at government and health care jobs.

In her everyday work as a senior geoscientist at BHP Billiton Canada, she does geological work (“literally looking at rocks”), as well as project management, including overseeing contracts, working with other companies, and acting as a resource for multiple teams if they require assistance.

“It’s varied work; I love the dynamic and challenge,” Komperdo said. “It’s a heck of a lot of fun.”

She also says both she and WIM/WiN-SK would like to see more diversity in the mining and nuclear fields, because diversity of gender, background, and sexuality brings with it diversity of thought.

“It’s generally a male-dominated industry, but studies across the world show that diversified work forces drive innovation.”

The fourth annual Mine Your Potential event also focused on this topic. The theme for this year’s event was “Mining The Gap,” addressing the gap in diversity in the mining and nuclear work force.

Held on September 23, the fullday event featured talks on a variety of topics, including work-life balance, emotional intelligence, understanding financial statements, technical presentations, and introductions to mining and uranium.

Opening remarks were from journalist Rosalie Woloski on the history of women in mining, and the keynote address was from Dr. ‘Lyn Anglin, chief scientific officer at Imperial Metals Corporation, about her career and the lessons she learned from her experiences in the industry.

The majority of the attendees work in mining or nuclear, but students also attend to learn more about possible career paths and to meet people in the industries.

The association has already begun planning next year’s conference. WIM/WiN-SK may only be five years old, but the organization has big visions for the future.

“We’re looking into why there’s a gap, how we can close it, and how to promote this industry,” Komperdo said. “I don’t see why we couldn’t get to 50 per cent [women in the industry]... The challenge is educating people on the industry, and understanding that it is an industry for everyone, regardless of background, gender, or sexual orientation. It’s not the old boys club that it was 30 years ago.”

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POTASH IN OUR PROVINCE Women in Mining/Women in Nuclear Saskatchewan (WIM/ WiN-SK) held its fourth annual “Mine Your Potential” event in Saskatoon yesterday, to encourage women to consider careers in the mining sector.

Shana is a process engineer at K+S Potash Canada’s Legacy Project mine site near Bethune.

P HOT O: K+S P OTASH CANADA

Paige is a process engineer at K+S Potash Canada’s Legacy Project mine site near Bethune. P HOT O: K+S P OTASH CANADA

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POTASH IN OUR PROVINCE CAROL TODD

Who knew? The search for life on Mars means looking down, not up.

Scientists in the United Kingdom (UK) are conducting research deep below the earth’s surface in conditions similar to those on Mars.

The ICL UK Boulby potash mine in north-east England not only produces almost half of the UK’s potash, it is also the site of one of the few facilities in the world where such research can be conducted.

The Boulby Underground Laboratory is a multi-disciplinary deep underground science facility operated by the UK’s Science & Technology Facilities Council (STFC) in partnership with ICL UK. Located 1,100 metres (3,608 feet) below the surface, the lab is one of only a limited number of locations deep enough for scientists to work where cosmic rays and other radiation cannot penetrate.

Termed “quiet places in the universe” by scientists, these locations lend themselves to a wide range of research projects, including the study of cosmic rays themselves, as well as of dark matter, the asyet undetected particles that make up 85 per cent of the universe.

POTASH IN OUR PROVINCE

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WHAT DO MARS AND POTASH MINES HAVE IN COMMON? Boulby is also home to the Mining and Analogue Research (MINAR) project, which studies how exploration techniques and instruments will function on other planets. It is funded by the UK Centre for Astrobiology in conjunction with ICL UK Potash Ltd, the Crown Estate, STFC and the European Union MASE (Mars Analogues for Space Exploration project).

Charles Cockell is a Professor of Astrobiology at the University of Edinburgh as well as director of the UK Centre for Astrobiology. His research focuses on understanding how life adapts to extreme environments, including examining how humans themselves would function. As part of the MINAR project, his findings may not only assist in the development of technologies to explore other planets, but also be used in the mining industry. “We are also testing equipment. Miners need lightweight, easy to use equipment similar to that needed for planetary exploration,” he said.

Cockell and his team are also examining how microbes extract energy and nutrients from rocks and what genes are needed for life to grow. “We are also undertaking studies of life under high radiation environments and in environments at below background levels of radiation,” he said. But, it’s the relationship between the

underground research and life on Mars that piques the public interest. Cockell is one of the scientists working at the Boulby International Subsurface Astrobiology Laboratory (BISAL) examining whether life is possible at such depths and in the extreme saline conditions that mimic the surface of Mars. “Life in deep salts is very interesting and little understood,” he said. “We are looking at microbes to understand living organisms in an extreme environment. There are different pathways going through the salts with varying degrees of salinity.

Different salts support very different communities of microbes.”

The findings of several NASA orbiters have led scientists to estimate that there may well be frozen water beneath the surface of Mars and that it may even flow intermittently on the surface. Any water that may be there is likely to be extremely salty, however, which is why the research at Boulby is so relevant.

A multi-million dollar (1.77 million British pounds) construction project is currently underway to replace the existing Boulby laboratory with a new, larger facility.

Funded by the STFC, the lab will house the current experiments as well as allowing room for additional studies.

If there are similarities between

the conditions deep under northeast England, so too are there similarities between the Boulby mine and those closer to home. Potash is one of Saskatchewan’s largest resources, and many of us are well aware that mining for the mineral takes place at numerous locations across the province. Some of those mines operate at depths and conditions that compare to those at Boulby, and may well be

able to mine more than minerals.

“It is a similar environment that could easily lend itself to this kind of research,” Cockell says of this province’s potash mines.

Whether or not life does exist on our closest planetary neighbour, scientists will continue to, as cinematic Martian Matt Damon put it, “science the s**t” out of the issue, looking both way up and deep down.

Researchers use Raman spectroscopy to study the salt 1,100 metres underground at the ICL UK Boulby potash mine in north-east England.

PH OTO COU RT ESY OF P ROFES SOR CHAR LES COCKELL

SRC SETS THE GLOBAL STANDARD FOR POTASH ANALYSIS

SRC technicians examine potash samples. P H O TO : S RC POSTMEDIA CONTENT WORKS

Almost right from the outset, the Saskatchewan Research Council (SRC) has been working hand in shovel with the potash industry to help with every stage of research and development.

Like many other mining operations, there is a lot involved in, first, finding the potash, then extracting it safely, efficiently and in a cost-effective manner, and, finally, dealing with the by-products. The SRC has been involved with the potash industry almost from the first, says Craig Murray, SRC’s vice-president of mining

and minerals. “We’ve been doing research in support of the potash industry for almost as long as SRC has been around,” he said.

The SRC was established by the Government of Saskatchewan in 1947 to provide applied research in support of the University of Saskatchewan. The council has “morphed” since then, says Murray, into a free-standing entity that conducts applied research for companies around the world.

Now considered a global leader in potash research, its Minerals Business Unit designs and performs potash processing and metallurgical testing work for the industry.

Interest has been such, in fact, that the Geoanalytical Laboratories were recently expanded to offer a Potash Exploration Package to offer a range of analyses of interest in the exploration for potash.

The SRC labs offer all stages of testing, from preliminary, detailed and pilot plant testing, to tailings characterization. “We do work right at the front end on the exploration side and also in the milling and processing and the extraction, as well,” he said. There are other labs that perform similar work, but Murray says they don’t provide that full range of services.

He says the SRC’s geoanalytical

facility is the “go-to lab not only in Canada, but around the world in terms of potash assay work. We’ve really developed the standards by which all other labs are compared, but also the actual chemical and physical standards that others use in their tests.”

As part of its research, the lab contains model-sized versions of almost all the equipment that is used in a mine or mill. “We have teeny tiny lab-scale versions of [processing] equipment. We also have a mineral processing pilot plant. We can’t do things as big as they do in a mine of course, but we can test them,” Murray said.

SRC will also build other specialized equipment to support specific research, such as test cells to assess potash. “We put a large pillar of potash in that device and put it under pressure and monitored it to determine the properties,” he said. Checking for the “looseness” of the potash to help determine its strength will help ensure it won’t crumble or collapse. “We also do some instrumentation work for them, whether it be loose detection again as it relates to the safety

underground,” he says.

While very specialized equipment is often used, Murray says SRC also works with potash mines on less scientific-based research such as the rate at which mining equipment operates. “We work with all the technological tools available, down to something as straightforward as the progression of a mining machine underground, which is still sometimes a challenge,” he said. Increasingly, he says, the research stays above ground. “We’ve also done a fair bit of work on when it comes to the surface side. That’s where we’re seeing more work come all the time, in helping them with the milling and the processing.”

While the world has changed significantly since 1947, especially in terms of computerization, potash research hasn’t changed a lot. “There are always technological changes, but they have been mainly subtle,” he said. “We’re not dealing with beakers anymore.”

But, with the range of equipment and expertise available at the SRC, only the Muppet’s Swedish chef might be disappointed.

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Tron shines as potash industry looks to Indigenous suppliers

Gary Merasty, President and CEO, Des Nedhe Group of Companies

A Tron employee fabricates a footing for an upcoming concrete pour. Indigenous people make up 30% of Tron’s workforce in Saskatchewan.

In recent years, mining giants K+S Canada and PotashCorp have made significant corporate commitments to increasing not only the number of Indigenous employees they have but the percentage of Indigenous companies in their supply chains. This is welcome news for Indigenous-owned companies like Tron Construction, Minetec, and JNE Welding – all part of the Des Nedhe Group of Companies.

As an Indigenous-owned company with many years in the provincial mining industry behind them, Tron is primed for an expanded relationship with potash companies. “We are well-positioned to meet the growing demand for Indigenous suppliers to the potash industry.

Companies realize that we are a good business decision,” says Tron President, Rob Stanger. “What makes us somewhat unique is that when you call Tron to talk

about a project or get in touch with people doing the job, we do not have to reach out to sub-contractors because we are doing the work ourselves. We have the workers and expertise right here.”

They also have the equipment. Recently, Tron invested $3.5 million in site services and underground mining equipment to meet the needs of their potash clients.

Tron’s ability to deliver such vertically integrated service led to a partnership with PotashCorp to develop the first 100 per cent Indigenous-owned mining company in the potash industry and helped win Tron part of the roughly $250 million in contracts awarded to First Nations and Métis suppliers as part of the K+S Legacy Project last year.

The benefits of industry and Indigenous engagement go beyond the corporate bottom line. “Considering the size of the workforce represented by Saskatchewan’s Indigenous population and the need for skilled labour and

expertise, Saskatchewan’s economy is better off when Indigenous people are involved,” Stanger suggests.

Given Tron and Minetec’s readiness to respond, look for them to be at the forefront of the growing relationship between the potash industry and Saskatchewan’s Indigenous population.

“The future health and growth of Saskatchewan’s economy will be significantly enhanced by the work of Indigenous suppliers in the potash mine sector.”

“Considering the size of the workforce represented by Saskatchewan’s Indigenous population and the need for skilled labour and expertise, Saskatchewan’s economy is better off when Indigenous people are involved.”

Rob Stanger, President, Tron Construction & Mining

In 2015, Tron introduced underground construction and rehabilitation services, providing support to mining companies and their contractors. With four crews of experienced miners and steelworkers, as well as a significant supply of heavy equipment, Tron is available to round out your underground team.

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Sustaining potash operations today for tomorrow At Mosaic, we often sum up the many parts of our business into a single sentence: we help the world grow the food it needs.

It sounds simple, but producing and delivering millions of tonnes of potash each year to customers all over the globe is complex. It requires teams of dedicated professionals making responsible decisions each day and at every step in the production and supply chains.

Helping the world grow the food that it needs is more than a corporate catchphrase to us.

It’s our reason for being.

We have a deep connection to the land we live and work on in Saskatchewan. It has been home to Mosaic and its predecessor companies for more than 50 years. Currently, we have over 2,200 Saskatchewan-based employees.

We are mindful of the importance of agriculture in this province and to people everywhere as the world tackles food security and a growing population. Agriculture simply won’t keep up with global food demand without good crop nutrition. Farmers must feed two billion additional people by 2050 with production from essentially the same amount of land that is being farmed now—which means fertilizer, and the higher crop yields it drives, will remain essential.

To help fulfill our mission, we’ve built a resilient, responsible, financially strong and innovative company, capable of responding day by day, quarter by quarter and decade by decade to the everchanging agriculture markets.

This means that we must also put more attention not just on the products we produce but on how we operate over the long term. We hold ourselves accountable for the safety and well-being of our

colleagues, our company and our natural resources.

By operating responsibly and sustainably, we are managing our financial risks, pursuing growth and innovation – and driving toward greater value for our stakeholders.

Environmental sustainability is particularly crucial to our success as a company.

Mosaic employees continually seek opportunities to reduce our water, energy and waste footprints across operations.

Examples of the programs underway at our operations include:

Water

Recent events in the province have reminded us just how precious our sources of freshwater are.

The use of water is a necessary part of potash mining, particularly at solution mines such as our Belle Plaine facility near Moose Jaw. This Mosaic property has an agreement with Yara Belle Plaine, a nearby facility, that sends water for a cooling process to the neighbouring plant. Then the heated water returns to Mosaic’s facility for use in potash production—allowing Mosaic to reduce the amount of energy that would have otherwise been spent on heating water by nearly 183 million kilowatt hours (kWh) per year. That’s the equivalent of reducing CO2 emissions into the air by 35,600 tonnes annually, or like taking 7,520 passenger vehicles off our roads each year.

By 2020, The Mosaic Company has made a company-wide commitment to reduce freshwater use in operations by 10 percent per metric tonne of product.

In 2015, we achieved a two percent reduction in freshwater use from the 2012 baseline. It’s great progress, but we have more work to do.

Energy, Greenhouse Gas Emissions and Recycling

Mosaic employees are also seeking opportunities to reduce waste and save energy use at our plants and mines.

In 2015, employees at our Belle Plaine facility replaced nearly 200 lights with LED fixtures, cutting power usage by more than 156,000 kWh per year, reducing a further 97 tonnes of CO2 from being emitted each year. That’s like reducing gasoline consumption by over 41,000 litres annually.

Just recently, we introduced comprehensive recycling programs to our four existing potash mine sites in Saskatchewan. Colour-coded waste containers are clearly marked at each location to cut back significantly on landfill waste.

Each site has the “blue bins” many of us are familiar with at home for paper, plastics, and cans. To take things one step further, bins for wood and metal are also available.

To underline our commitment to responsible energy

use, Mosaic established a company-wide target to reduce our total energy use by 10 percent per metric tonne of product by 2020. In 2015, the company achieved a five percent reduction in energy use from the 2012 baseline.

In terms of greenhouse gas emissions (GHG) reductions, Mosaic established a company-wide target to reduce our combined Scope 1 and Scope 2 GHG emissions by 10 percent per tonne of product by 2020. In 2015, the company achieved a two percent reduction in GHG emissions from the 2012 baseline.

Land, Biodiversity and Giving Back to the Community

We understand that the sustainability of our business relies on the sustainability of our communities – where we live, work and raise children.

We strive to be a thoughtful neighbour who invests carefully and generously and seeks partnerships with organizations that are making a

difference.

One such example is the Mosaic Community Food Farm in Moose Jaw. A collaborative effort of local non-profits and community minded funders, the Food Farm is a three-acre garden in beautiful Wakamow Valley. The garden grows fresh produce that is primarily distributed or prepared at the Moose Jaw and District Food Bank, Riverside Mission, and Hunger in Moose Jaw. Mosaic also invested over $250,000 in species and land management programs in 2016. Here are several examples of our community investments: • Mosaic supports the Nature Saskatchewan Stewardship program, which allows rural landowners to work together to promote prairie conservation through on-site visits and the development of educational activities that highlight the benefits of a healthy and diverse ecosystem.

• The Stewards of Saskatchewan program currently has almost 700 participants who have committed to conserving and protecting 74 miles of shoreline and over 290,000 acres of prairie habitat for wildlife and other species at risk.

• Our Belle Plaine facility has partnered with Wild and Cared Free, a wildlife rehabilitation center dedicated to returning wildlife back to the wild.

• Mosaic has a three-year agreement with Ducks Unlimited and other partners in the Western Winter Wheat Initiative.

To read more about sustainability at Mosaic, visit our website: www.mosaicco.com /2015sustainabilityreport.

THIS STORY WAS PROVIDED BY MOSAIC FOR COMMERCIAL PURPOSES.

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