Saskatchewan, Canda poised to leverage potash: report says

A worker holds a hand full of pink potash. (Source: K+S Potash Canada)

Amid global tensions and major pressures on international supply chains, Saskatchewan has an opportunity to maximize its reserves of potash.

According to the Canada West Foundation (CWF), Canada, and Saskatchewan specifically, can leverage its world-leading reserves of potash.

Canada West’s report advocates for the provincial and federal governments to improve supply chains, identify opportunities for talent attraction and retention, and to continue supporting trade diversification.

“Potash is a key strategic resource for Canada, and an essential contributor to global food security. It is therefore of significant importance that Canada and Saskatchewan continue to develop and grow this industry,” read the report.

Potash is a potassium-rich mineral often used as a fertilizer. Canada has the largest known potash reserves in the world, with the vast majority located in Saskatchewan.

“The rules-based international order, or the rules and norms spearheaded by the U.S. that have structured international relations for nearly a century, no longer seems as reliable as it once did,” the report read.

“Therefore, countries such as Canada need to leverage strategic resources to safeguard both national security and prosperity, and few priorities are more critical than ensuring reliable access to food production.”

CWF went on to argue that strengthening potash mining also serves as an economic boon to Saskatchewan’s economy.

The report said potash is second to Saskatchewan’s oil industry in terms of single industry contributions to GDP.

Between 2017 and 2020, the industry paid about $500 million in federal, provincial and municipal taxes per year, followed by $2 billion in 2021.

Thanks to record prices, the industry paid over $5 billion in taxes in 2022.

Around 6,000 people in Saskatchewan work in the non-metallic mining sector, with potash as the largest constituent. CWF said an additional 12,000 people work in the supply and service industry.

“Not only does this make the industry a major employer in the province, but one of the highest paying. The average salary for workers in Saskatchewan’s mining industry was nearly $110,000 in 2022, compared to Saskatchewan’s median income of $45,400,” CWF said.