Above: The Saskatchewan potash sector accounts for approximately 30 per cent of world production and directly employs approximately 5,000 people. Left: The new Potash Production Tax Regulations, 2020 will offer incentive tax credits of 40 per cent of eligible expenditures for qualified R&D projects and approved market development programs. Photos provided by the Government of Saskatchewan.
Amended potash regulations
seek to attract new innovation and investment The Government of Saskatchewan
to attract and foster new, sustain-
tions and look forward to provid-
has amended The Potash Produc-
able advancements in our province’s
ing long-term economic benefit to
tion Tax Regulations, 2020, which
world-class resource sector.”
the Saskatchewan community while
will improve opportunities in the potash sector, particularly for junior producers, around innovation and
Qualified R&D projects must demonstrate improved production efenvironmental
Adds Giles Hellyer, president of BHP Canada Inc., “We welcome the
The regulations will offer incentive
employees and mine operations, or
amendments that recognize innova-
tax credits of 40 per cent of eligible
develop new and improved potash
tion and believe such incentives can
expenditures for qualified R&D proj-
products. Companies must devel-
benefit the Saskatchewan potash
ects and approved market develop-
op new markets or expand existing
industry as it strives to pioneer new
ment programs. The amendments
ones to be eligible for market devel-
developments that enhance worker
will allow companies to take full ad-
opment credits.
safety and environmental protec-
vantage of the credits by removing expiry dates and enhancing eligibility requirements.
mitigate
ership.”
impacts, reduce physical risks to
research and development (R&D).
ficiency,
demonstrating real-world ESG lead-
“We are very pleased to see clear leadership
with
respect
to
the
tions, as well as efficiency and productivity.”
amendments to the Saskatchewan
The Saskatchewan potash sector
“These changes will promote the ex-
Potash Production Tax Regulations,”
accounts for approximately 30 per
pansion of Saskatchewan’s potash
said Mike Ferguson, Gensource Pot-
cent of world production and di-
sector and ensure that our province
ash Corp. president and CEO. “The
rectly employs approximately 5,000
remains the preferred jurisdiction in
amended regulations dovetail with
people. Full-year potash sales for
which to pilot innovative technolo-
the leadership in innovation that
2019 reached 12.3 million tonnes–the
gies,” said Energy and Resources
Gensource is deploying at its Tu-
second highest on record–with sales
Minister Bronwyn Eyre. “As we move
gaske project. Gensource welcomes
expected to reach a record of nearly
into economic recovery, we want
the amendments to the regula-
14 million tonnes in 2020. s
28 PotashWorks 2021
