The Potash Producer, Volume 1, Issue 2

p otash producer THE

E-newsletter | a potashworks companion

august

2021 vol. 1, issue 2

Sodium sulphate producer invests in future of fertilizer in Saskatchewan

Karnalyte Resources ready to produce potash and magnesium co-products

Mine flood! potashworks.com

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p otash producer THE

IN THIS ISSUE Message from the editor, Shayna Wiwierski – 6

DEL Communications Inc. www.delcommunications.com

Sodium sulphate producer invests in the future

President & CEO David Langstaff

of fertilizer and Saskatchewan – 8

Managing Editor Shayna Wiwierski shayna@delcommunications.com

BHP changing the face of potash – 10

Director of Online Marketing & Sales MIC PATERSON mic@delcommunications.com

From where I sit… Mine flood! – 12

Advertising Manager dayna oulion

Nutrien’s new rescue truck raises the bar on safety at potash sites – 14

Contributing Writers: HASITH ANDRAHENNADI, STEVE

HALABURA, ANDREA HANSEN, DEREK HOFFMAN, JOSEPH MACDONALD, NATHAN MORGAN, RON OLCHOWSKI

Karnalyte Resources ready to produce potash (and magnesium co-products) – 16 Parity in potash – 18

© 2021 DEL Communications Inc. All rights reserved. Contents may not be reproduced­by any means, in whole or in part, without the prior written permission of the publisher­.

The age of testing – 20 Benefits of risk management for potash producers – 22 Ground-control management plan considerations – 24 It’s never apples to apples – 26 Masterful procurement of master goods/services agreements – 28

While every effort has been made to ensure the accuracy of the information contained in and the reliability of the source, the publisher in no way guarantees nor warrants the information­ and is not responsible for errors, omissions or statements­ made by advertisers. Opinions and recommendations­made by contributors or advertisers are not necessarily those of the publisher­, its directors, officers or employees.

DEL Communications Inc. and potashworks.com are extremely grateful to our advertisers for their support in this publication. We invite you to visit their sites by clicking the companies below.

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Message from the editor Shayna Wiwierski

W

elcome to Volume 1, Issue 2 of The Potash Producer e-newsletter.

After we released the first issue of The Potash Producer e-newsletter back in April we were so thrilled to see the response from readers.

It was your enthusiasm that helped to spur our next issue and we are thrilled to present you with Issue 2 of this exciting endeavour.

There is lots of great content in store for you in this issue of The Potash Producer e-newsletter. Our cover story on page 8 is about how the Saskatchewan Mining and Minerals Inc. (SMMI) is upgrading its facility to produce sulphate of potash fertilizer. On page 18, the Women in Mining and Women in Nuclear Saskatchewan Inc. (WIM/WiN-SK) chats about gender equity

and how businesses need to have a more inclusive and diverse workplace. On page 20, we explore substance abuse in the workplace and the trials and tribulations of testing for these substances.

Those are just a taste of what’s in store for you in this edition (I don’t want to give too much away!). We hope you enjoy reading Issue 2 of The Potash Producer and we hope you will help spread the message about this exciting initiative. Also, if you haven’t signed up already, we invite you to share this with your colleagues and friends and to sign up for our newsletter at www.potashworks.com/potash-producer/.

Finally, we wish to thank all the companies who have contributed a story for Volume 1, Issue 2 of The Potash Producer.

Special thanks go out to the following contributors:

• Saskatchewan Mining and Minerals Inc. • Nutrien • BHP • Steve Halabura Potash Consulting Ltd. • Women in Mining and Women in Nuclear Saskatchewan Inc. (WIM/WiN-SK) • The Hoffman Group • Sutton Benefits & Pension • Karnalyte Resources • RESPEC • Armour Safety • GeoResources Risk Solutions We invite all interested companies to share their news and editorial ideas with us. If you would like to contribute a story for future issues of The Potash Producer e-newsletter, please contact myself, Shayna Wiwierski at shayna@delcommunications.com. l

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Sodium sulphate producer invests in the future of fertilizer and Saskatchewan SMMI has been producing sodium sulphate for more than 70 years at its facility in Chaplin, Saskatchewan.

S

askatchewan Mining and Minerals Inc. (SMMI) is capitalizing on a unique opportunity to expand its operations into the growing and vibrant plant nutrition market by upgrading its facility to produce sulphate of potash (SOP) fertilizer.

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SMMI has been producing sodium sulphate for more than 70 years at its facility in Chaplin, Saskatchewan. The company is now tapping into provincial government programs to support a substantial upgrade planned for the facility that will allow SMMI to combine its sodium sul-

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phate with Saskatchewan potash to produce SOP fertilizer.

“This upgrade is critical to the sustainability and growth of the Chaplin facility, and we are very pleased to have this ‘only in Saskatchewan’ opportunity which has been greatly enhanced by the support we have received by the Government of Saskatchewan,” says Brent Avery, general manager of SMMI. “They have been responsive and supportive throughout the process, looking at new and innovative ways to help support our future plans.”

The current Chaplin site is situated about 150 kilometres west of Regina in southern Saskatchewan on the TransCanada Highway and the Canadian Pacific main eastwest rail line. The Province of Saskatchewan was quick to provide conditional approval for the facility upgrade under the Saskatchewan Chemical Fertilizer Incentive (SCFI). The SCFI is a non-refundable, non-transferable 15 per cent tax credit on capital expenditures valued at $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.

“The Saskatchewan government clearly understands the immediate and longterm role that rural projects such as ours can play in strengthening and building Saskatchewan’s economy as we emerge from the COVID-19 pandemic,” says Rodney McCann, president of SMMI. “Their active and ongoing support of our SOP upgrade is critical to it moving forward in these uncertain times and a clear demonstration of their commitment to making their 10-year Growth Plan for Saskatchewan a reality.”

“Quality cannot be inspected into a product. It must be built in,” says Jenelle Cooney, HR manager at Prairie Machine.

“And employees that feel appreciated and valued, and that are provided a physically and psychologically safe work environ-

ment, tend to go the extra mile for their employer. The result is higher-quality products, happier customers, and continued company growth. Not to mention higher employee morale and loyalty.”

More information about the upgrade and SMMI can be found at www.saskatchewanminingandminerals.com/. l

The provincial government also conditionally approved the Chaplin facility upgrade for the new Sodium Sulphate Incentive, which provides a 10 per cent credit for capital projects that diversify products or improve operating efficiency. In addition, the provincial government reduced the royalty rate for sodium sulphate production from four to three per cent to support the sector through the transition.

“In this year’s budget, we changed sodium sulphate royalties to help complement and diversify our potash sector, as we continue to export fertilizer to the world,” Saskatchewan Energy and Resources Minister Bronwyn Eyre said in a statement. “As demand increases for these new products, we expect potash royalties to increase. This is about adding value: while sodium sulphate as a stand-alone product is somewhat in decline, the profitable SOP market has a strong long-term outlook.”

Once complete, SMMI’s $220 million SOP fertilizer production upgrade is expected to result in a 50 per cent increase in jobs at the Chaplin facility and more than 360 construction jobs. The upgraded facility is expected to produce 150,000 metric tonnes of SOP per year, which will be sold to North American and international markets as a high-quality fertilizer and plant nutrition product. Further expansion opportunities exist and are being evaluated at SMMI’s Ingebrigt Lake and other Saskatchewan-based sodium sulphate reserve locations.

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BHP changing the face of potash ments and creating shared opportunities and prosperity. We were the first in the potash industry to execute these Opportunity Agreements, and now hold six such agreements with local Indigenous communities. As part of these partnerships we look for opportunities to contract with Indigenous suppliers and create job opportunities.

BHP’s experience around the world shows that our most inclusive and gender diverse teams perform better than the company average in areas such as safety, production, cost efficiency, employee engagement, and mental health.

W

e’ve all heard it. Mining is historically a male-dominated industry. Numerous studies have shown that innovation and effective-

ness thrive on diversity, but the mining industry has had some tough hurdles to clear to create more workforce equity.

BHP’s experience around the world

shows that our most inclusive and gender diverse teams perform better than

the company average in areas such as safety, production, cost efficiency, employee engagement, and mental health.

year. In potash, our workforce is now 37.4 per cent female, but we know there is still work to do.

This past year we were also pleased to sign the CEO Statement of Support for

the United Nations (UN) Women’s Empowerment

Principles

to

strengthen

our global commitment towards gender equality. Our partnership with UN Women and the UN Global Compact en-

courages business leaders to use its principles as a guide for actions that advance and empower women in our workplace, marketplace, and community.

In 2016, in the knowledge that our most

BHP also respects the rights of Indig-

BHP set an aspirational goal to achieve

cultures, and recognises the enormous

diverse teams were our most effective,

gender balance globally by 2025. This was a bold move, considering that at the time women only made up 17.6 per cent of our workforce. We have gradually

made progress in female representation

by reaching 26.5 per cent representation in 2020, with further gains made this

10

enous peoples, celebrates Indigenous

contribution that Indigenous peoples make to BHP and the communities in

which we live and operate. At the Jansen

Potash Project, we are proud of the Opportunities Agreements we have signed with local Indigenous communities and

are committed to upholding these agree-

While gender diversity and Indigenous representation are our top priorities, we are also investing time and money into other areas of diversity, including neurodiversity, age, disability, nationality, ethnicity, and sexual orientation. And it is not only about hiring diverse employees – we aim to retain them and ensure they feel welcomed and valued to create a pipeline of future leaders within BHP. We have implemented policies and practices that have been effective in helping the company to retain, rehire and promote diverse employees to create a culture of respect and inclusiveness.

To help build our culture of respect and inclusiveness, we work to create flexibility in the way we work, have enabled our supply chain partners to support our diversity targets, mitigated biases through training, and ensure our brand is attractive to a diverse range of people. We have ongoing work to educate and create awareness among our people to recognise and mitigate potential bias and to speak up if they encounter behaviours that are inconsistent with our values and expectations.

We have assembled an internal working group to develop a holistic plan to address the controls and cultural enablers of sexual harassment and assault in the workplace and how to eradicate this unacceptable behaviour from our business.

As part of our commitment to creating a safe and inclusive workplace, we recently ran a Respectful Behaviours Cam-

paign at Jansen in which more than 650 employees and contractors participated, with specific focus on eliminating sexual assault and sexual harassment in the workplace.

Practical and tangible differences are being made to improve inclusiveness.

BHP Australia has worked with one of our major material suppliers to redesign personal protective equipment (PPE) and other workwear to offer more size and shape choices. Historically, PPE has been designed for male requirements. Rather than have women make do with PPE that did not fit and was uncomfortable, BHP Australia made more than 70 changes and improvements to our PPE clothing range from the size of socks and female boots, to the size and weight of helmets and garments to be more inclusive and

change the preconceived notions of the “average miner”. We are finding ways to incorporate this into Jansen as we grow our local workforce.

We want BHP to be an enjoyable and

In Saskatchewan, much of the potash industry was developed decades ago.

Jansen has the unique opportunity as a greenfield development to incorporate diversity and inclusion in its design. An example is the care and thought that went into sourcing equipment that no longer requires traditional “brute force” to maintain. Effective equipment layout, pre-determined lift assist strategies, as well as adoption of battery electric machines for equipment and material logistics, ensure our inclusive and diverse workforce – regardless of individuals’ size and strength – goes home safely at the end of every day.

enormous business, workplace, and com-

inclusive place to work where everyone is respected and valued. Creating an inclusive and diverse workforce provides munity benefits.

“Today we’re laying the foundation for building tomorrow’s workforce”, said Giles Hellyer, vice-president Operations.

“We’re changing the face of potash with our set targets and are pleased to have increased our commitment to a diverse workforce, appreciating all the different aspects of individual uniqueness, including gender, but also thought and perspective, experience, age, disability, nationality, ethnicity, and sexual orientation.” l

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11

from where i sit...

mine flood!

By Steve Halabura, P.Geo., Halabura Potash Consulting Ltd.

I

n June of this year, Mosaic announced the accelerated closure of its K-1 and K-2 mines near Esterhazy, Sask. due to high levels of brine inflow. After several decades of strug-

gle, the inflow rate finally exceeded the

economic cost of keeping operations go-

ing, so the mines are shutting down to be replaced by the K-3 facility.

Believe me, there is no more fearful a cry from a potash miner’s mouth than

the words “mine flood!”, and it’s easy to

see why. The mining horizon consists of

the summer of 1988, the mine was back

shallower Cretaceous reservoirs, like the

potash brine retrieved from the flooded

were complex mixtures of calcium, mag-

to producing potash, only this time from workings by means of surface wells.

About this time, two other inflows occurred. A water inflow at Nutrien’s (then

Blairmore. The third, called “ancient”, nesium, bromine, and other elements that he believed originated about the time the potash beds were formed.

Potash Corp of Saskatchewan) Rocanville

If normal brines got into a mine, disso-

flood was contained to one small area of

mal, as the brines are already saline. It

mine threatened operations, however the

the mine and it was contained by means of a big underground plug. The other was at Mosaic’s K-2 mine.

sylvite and halite, both extremely soluble

In areas other than Saskatchewan, mine

nical word is “ductile”) rocks that will

ground operations – for instance, the Nu-

low stress. That is why hard rock miners

mines in New Brunswick, the Texasgulf

lution of the workings would be miniwas more of an operational hassle. If it was ancient brine, ditto. However, if the water was fresh or brackish, as might be

found in the Cretaceous Blairmore Formation, then extensive damage could be

minerals. These are very weak (the tech-

floods have caused the demise of under-

flow from areas of high stress to areas of

trien Sussex and Potacan Cassidy Lake

The Blairmore? You may be thinking

hate potash mining – everything wants

Moab Utah mine, and Uralkali 1 and 3 in

the potash beds”. However, this is where

to move.

and near Berezhniki, Russia.

So here is how a potash mine dies: water

Yet, other Saskatchewan underground

supporting back and pillars to dissolve.

time; however, these were successfully

pillars, causing them to creep, which only

and others aren’t?

flows into the mining rooms, causing the

mines have encountered inflows over

This puts great stress on the remaining

remediated. Why are some mines lost

creates more stress. More stress opens more fractures, thus increasing water in-

flow. In a short period, everything begins to come down, and the mine is lost.

In 1988, a seminal thesis by University of

Saskatchewan Master’s degree candidate

Mark B. Wittrup shed light on this problem. Wittrup collected samples of water

The above sounds catastrophic; how-

from various leaks in operating mines

Company of America) Patience Lake

other elements contained in those wa-

ever, this is how Nutrien’s (then Potash

and studied the isotopes of oxygen and

mine very rapidly morphed from a con-

ters. He was able to identify three differ-

ventional tunnel mine into a solution mine. In December 1986, an old water inflow first detected in 1975 began to

flow, and by February 1987, the underground workings were abandoned. By

12

done.

“but that’s hundreds of metres above

“short-circuiting” comes into play. The

Prairie salt is commonly “pincushioned” with structures formed when naturally occurring water made its way down into the Prairie, dissolved out the salt, then

flowed back out, creating vertical chimneys of collapsed rock that are perfect pipelines for water flow.

Miners go to great lengths to identify

such “collapse structures” and avoid them. Should one be inadvertently struck during mining operations, it could cost

the operator the mine, as was the case with Patience Lake.

ent types of waters. The first, called “nor-

Geology can be more subtle; for instance,

reservoirs overlying the potash beds. The

ing the potash beds often contain brines.

mal”, were salt brines from Devonian second, called “short-circuited”, were

fresher waters typically found in much

the carbonate rocks immediately overly-

Over time, as potash is removed, the overlying rocks subside, and these reser-

voirs can connect with the mine through

Are Mosaic’s K-1 and K-2 mines gone

brine is saturated and produced at low

manager at the time of the Patience Lake

fractures. In most cases, the resulting rates. However, as at Mosaic K-2, the inflow was not that benign.

From where I sit, I can’t say that every

forever? In the words of PCA’s general

flood, R.C. Smith, it may be a case of “turning lemons into lemonade”. Smith and his team converted the underground

tunnel mine in existence will eventually

workings into a gigantic cavern, where

ogy ensures mine floods will never hap-

remaining potash and thus be pumped

swan” that could conceivably land upon

continued to make a high purity muriate

(or flooding) down. But I can say this:

was left behind in the workings, so the

story here is the amazing effort made by

the surface went away.

flood, just as I can’t say that new technol-

brine could be used to dissolve out the

pen again. They remain a risk, the “black

to surface, where the existing refinery

one’s pond and bring the world crashing

of potash. Even better, much of the clay

the remarkable and largely unwritten

need to stow surface tailings waste on

the various engineering and geological

teams in controlling and managing such events.

Now there would be a lot of lemonade!

‘Nuff said! l

A schematic from Mark Wittrup’s thesis showing the mechanism of “short-circuiting”.

13

The system is ready to respond and can be set up in as little as 30 minutes.

N

Nutrien’s new rescue truck raises the bar on safety at potash sites utrien’s Saskatchewan potash

“Our current rescue system uses a 53-foot

cess that also introduces the risk of tools,

and better ways to improve

winch which are trucked to the site. From

down the shaft.

sites continually look for new

safety performance – and its new,

state-of-the-art

rescue

truck is a prime example of those efforts

trailer that houses a diesel generator and

there, a steel frame is built within the shaft compartment to ensure adequate

support for the rescue pod,” says Robu-

in action.

lak. “Moving the trailer to site and mak-

If a power outage or similar incident tem-

several hours.”

porarily strands miners underground, Nutrien has a backup exit system in place to get workers to the surface safely and quickly. However, the new truck raises the bar in both categories, says Trevor Robulak, potash’s senior specialist of hoist integrity engineering.

14

ing the necessary preparations can take

The new custom-built system features a truck-mounted hoist, a telescoping boom crane, and a robust worker pod. Once on-

site, the system can be set up in as little

as 30 minutes. The system doesn’t require the construction of a steel support frame

within the shaft, a time-consuming pro-

fasteners, or even steel being dropped “The driver simply backs up to the shaft,

then operators put the outriggers down

and hook up the pod. It can then be lowered down to the miners,” says Robulak.

The benefits do not stop there. The new truck also provides the hoist operator with greater visibility of rescuers and the

pod at the shaft’s surface access point,

while a state-of-the-art control panel allows the hoist operator to program stopping positions, further enhancing safety.

The pod itself allows a clear view of

where the rescuers are and what they are approaching below the surface. The pod

is also equipped with a lighting system and communications technology that

uses the crane’s rope as an antenna for real-time information exchange, as well as a remote emergency stop feature.

Collaboration was key in making this project a reality. Robulak and his team held several meetings with the hoist and

shaft committees at potash sites, learning

the intricacies of each operation so the technology could be tweaked to fit all sites’ requirements.

“A special thanks goes to the Rocanville,

Saskatchewan team, whose members

provided feedback and lessons learned on the operation of their rescue truck.

That input was instrumental in making

enhancements to the finished product we now have,” says Robulak.

It takes three people to set up and operate

the rescue truck’s equipment, and Robu-

lak is training teams at each site to ensure there is a deep bench of trained personnel in place.

The new rescue truck is housed in a cen-

tral, indoor storage space in Saskatoon, Saskatchewan, where it is protected from

the elements and ready to serve Nutrien’s

Saskatchewan potash sites, as well as those of its competitors, should they need assistance.

“The new truck, alongside the existing rescue truck at Rocanville – as well

as the recent purchase of a rescue truck by another potash company – has significantly increased miner safety in the province of Saskatchewan,” says Trevor Berg, vice-president, Potash Operational

Strategy and Optimization, Engineering, Technology and Capital. “There’s a

healthy rivalry among the potash mine operators, but when it comes to safety, we don’t compete, we collaborate.” l

Steel rescue pod.

Rescue truck control panel.

Karnalyte Resources ready to produce potash (and magnesium co-products)

Karnalyte Cavern Demonstration Plant in 2016.

By Ron Olchowski

‘‘C

arnallite good” – Now

carnallite mining and processing is car-

often hear in the Saskatch-

China; however, we will be the first to

there’s a phrase you won’t ewan potash industry. In fact, for most miners and

processors of sylvinite ore, carnallite can

cause processing issues. Carnallite is a hydrated double salt of potassium chloride and magnesium chloride [formula

KCl·MgCl2·6H2O]. If one has a large carnallite deposit and you utilize different processes, you can in fact produce high-

grade potash and an array of magnesium compounds from the generated by-prod-

uct. We will not be the first to do this, as

16

ried out in Germany, Israel, Jordan, and use it in Canada.

Karnalyte Resources Inc. has a large carnallite deposit just south of the town of Wynyard, Saskatchewan. After exploring

only one-third of our lease area, we have enough reserves to feed a plant produc-

ing 2.125 Mt per year for 68 years. Being a junior company with our first greenfield project, we plan judiciously to build it in

three phases with our first plant scheduled to produce 625 kt per year. It will

be a solution mine, using proven dou-

ble-well cavern technology that is well known in the potash industry.

From the start, we strived to design our

project in the most environmentally

friendly way possible and our process designs were accepted in the environment minister’s approval of our environmen-

tal impact statement. The major thrust

will be to dispose of our waste products on an ongoing basis, replacing them back underground. This means that we will

not have a tailings management area. No tailings pile, no tailings ponds, no slimes

ponds; just one pond to capture precipitation runoff from the plant area. Our

waste brine streams will be deep well injected into the same formations used

by other potash mines, and solid sodium chloride waste will be disposed in spent

mining caverns as the mine progresses.

We are aided by the composition of our

From the start, we strived to design our project in the most environmentally friendly way possible and our process designs were accepted in the environment minister’s approval of our environmental impact statement.

ore body, which contains less sodium

chloride than other potash ores and thus reduces the waste volume.

exclusively granular-grade KCl97 that

immediate sales and eventually as feed-

Additionally, we will not use fresh wa-

less than one per cent NaCl. We have

higher valued compounds of magnesium

ter to feed our process. We pioneered the concept of using salty water from the

famous Blairmore Formation as dissolution medium in our solution mine field

caverns and to carry waste salt as brine into our deep disposal wells.

We will use a proven pan-granulation method to produce spherical pellets of

will contain at least 97 per cent KCl and some new methods as well to prevent product size degradation and dusting.

Our product has been tested in a Saskatchewan Air Seeder and passed with flying colours.

Some of the magnesium chloride brine separated in our evaporation process will be a valuable by-product stream for

stock for a future plant that will produce

carbonate, magnesium oxide, or magnesium hydroxide.

Our first major potash customer will be

Gujarat State Fertilizer and Chemicals Ltd. of India, who are a significant investor in our company, and who plan to

further the use of granular fertilizers in mechanized agriculture in India. l

17

Parity in potash Inclusion growth curve As Saskatchewan continues to rise to the forefront of the potash sector, the mining industry as a whole continues to struggle with under-representation of women.

Currently, the Mining Industry Human Resource Council (2021) reports 10 per cent of roles in Saskatchewan mining are filled by women which is down eight per cent from two years ago. There has also been a recent shift within mining companies to reflect the diverse communities in which they operate (Peltier-Huntley, 2019). Under-represented groups, such as women, can help to fill these projected labour gaps and aid in solving challenges the industry faces. Inclusive and diverse workplaces have been found to be more profitable, more innovative, and better places to work.

A goal of Women in Mining and Women in Nuclear Saskatchewan Inc. (WIM/ WiN-SK) is to improve gender equity, which will flourish in inclusive and diverse workplaces. Diversity is the variety within an organization that is often reflected in demographics, such as gender, race, or sexual orientation. Inclusion is the

18

acceptance and celebration of differences in an organization, which allow people to be themselves. Gender equity is defined as a: “Means of fairness of treatment for women and men, according to their respective needs. This may include equal treatment or treatment that is different, but which is considered equivalent in terms of rights, benefits, obligations, and opportunities.” (Pavlic et al., 2000, p. 5).

To create inclusive and equitable workplaces we need both systemic changes to company policies and practices, or “in-

stitutionalizations” (Johnson & Johnson, 2019), and also a shift in collective individual behaviours and attitudes, or “cultural inscriptions” (Johnson & Johnson, 2019). The Inclusion Growth Curve was originally published by Women in Mining’s 2015 National Action Plan as guidance for organizations to navigate systemic and cultural changes. We can also use an individualized Inclusion Growth Curve, shown in Figure 1, as a roadmap for individuals to proceed along their journey to equity. While we might not be

in positions to change company policies and systems, we can choose to take action as individuals to improve company culture.

Both organizations and individuals may cycle at the bottom of the curve as they struggle with “articulation and definition” (Johnson & Johnson, 2019) of the problems they see or experience or “the debate” (Johnson & Johnson, 2019) around these problems. It is clear that, in order to shift the needle on improving gender equity, we need to move beyond simply producing more recommendations for equity, diversity, and inclusion (Laplonge, 2016) to showing examples of actions. Actions could include showcasing successful implementation strategies and case studies which are shifting culture and systems towards being equitable (Mining Industry Human Resources, 2018; Wells, Williams, Corrigan, & Davidson­­­, 2018).

The Inclusion Growth Curve was originally published by Women in Mining’s 2015 National Action Plan as guidance for organizations to navigate systemic and cultural changes.

When considering the road to equity for under-represented groups and the recent shifts towards inclusive and diverse workplaces in the mining industry, as well as the potash sector, we can, and should, choose to become allies or agents of change. As part of our own personal growth, we can educate ourselves about the historical, systematic, and cultural barriers that under-represented groups continue to face. As you work on setting personal or career goals, WIM/WiN-SK challenges you to reflect on where you are on the Inclusion Growth Curve and select an area where you can advance your understanding of equity. l

References Johnson, N., & Johnson, G. P. (2019). Teaching critical analysis in times of peril: A rhetorical model of social change. Peitho, 22 (Fall/Winter 2019).

Laplonge, D. (2016). A toolkit for women: the mis(sed) management of gender in resource industries.

Journal of Management Development, 35(6), 802-813. doi:10.1108/JMD-07-2014-0078 Mining Industry Human Resources. (2018). Gender equity in mining works: Case studies report.

Retrieved from https://mihr.ca/wp-content/uploads/2020/02/Mihr-GEM-Case-Studies-EN-web-1.pdf Mining Industry Human Resources. (2021). Interactive Labour Market Dashboard. Retrieved from https://mihr.ca/labour-market-information/interactive-labour-market-dashboard/ Peltier-Huntley, J. O. (2019). Closing the gender gap in Canadian mining: An interdisciplinary mixed methods study. (Master of Science). University of Saskatchewan, Saskatoon, SK. Wells, M. A., Williams, M., Corrigan, E., & Davidson, V. (2018). Closing the Gender Gap in Engineering and Physics The Role of High School Physics. Retrieved from Ontario Network of Women in Engineering: http://www.onwie.ca/wp-content/uploads/2019/02/White-Paper-Final-Draft.pdf Women in Mining. (2017). Welcoming to women: An action plan for Canada’s mining employers.

Retrieved from http://wimcanada.org/wim-canada-national-action-plan/

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19

The age of testing Many operators have experienced the loss of a long-term employee due to substance abuse due after testing non-negative for a post-incident or reasonable suspicion test.

W

hen the legalization of marijuana was occurring, there was a significant concern

in various industries. The mining industry was no

different. Mining operators across the North American market did not welcome

the new approval from the federal government across Canada. They watched as

each province developed its internal regulatory rules for the sale and consumption

of marijuana. As the legalization came to fruition, mining operators did not make

any changes to their current programs.

They watched with interest if they would see a spike in the number of positive cases

within their operations. With no empirical data to support this statement, it appeared to have been a slight increase, but

and soon tapered off to pre-legalization levels.

Many operators have experienced the loss

of a long-term employee due to substance abuse due after testing non-negative for

a post-incident or reasonable suspicion test. This can be devastating for the orga-

there are no tests currently on the market that can provide that same data point to illustrate when someone is still under the influence.

a longer-term employee testing positive

training involves understanding drugs

perience the operations would lose from

for marijuana, which may or may not be a substance abuse issue. It just happened to

be in their system many days after engaging in a legal substance as a way to relax

or unwind with friends and family, simi-

lar to a sharing a cold beer. The difference

is in the duration the product stays in the system.

cur. It was more on the pre-access cases

methods, as marijuana is a long-lasting

20

you are aware of what your levels are,

Industry has started to rely on the educa-

Most mining operators also started to look

that seemed to increase, not significantly,

like alcohol, a quick breathalyzer where

nization due to the significant loss of ex-

most employees of mining operations

continued as if the legalization did not oc-

proving what constitutes impaired. Un-

tion side of drug use for employees. The

and the effects of using it and remaining

in their system. Workers need to understand that even though the use of marijuana is legal, it can remain in their sys-

tem and show up in a potential drug and alcohol test. Managers are starting to be trained in responsible suspicion training

so they can be aware of marijuana usage in the workplace.

for updates and advancements in testing

Looking deeper into substance abuse in

molecule in the body, looking towards im-

are doing now—looking not only at the

the workplace is what many operations

alcohol and drug programs, but looking toward “fit for duty”. As an operator, you

need employees who are fit and ready to work. This means well rested, mentally attuned to the work, and not impaired

by other chemicals (alcohol, narcotics, or prescriptions). These programs lead to better programs being developed around fatigue

management,

mental

health,

and substance abuse support programs.

Many mining operators focus on safety

confusion regarding what it means to

impairment, change in behaviour, and so

operation. Safety success leads to higher

on workers if they should test positive.

their frustration after a positive test as it

as a critical matrix to the success of their performance from your workforce along

with employees who stay with the company longer.

The additional programs related to education and training are a key factor in keeping the workplace safe, but also reduces

have legalized marijuana and the impact Industries have stayed the course of zero tolerance for marijuana or other illicit substances. Education and training for

was a one-time thing, or they didn’t think it should be an issue two weeks later. As

operations continue to navigate the legal-

the worker is important, but the key is to

ization of marijuana issues, we all watch

cion, post-incident testing protocols, how

ijuana will be developed that works simi-

train the supervision in reasonable suspito recognize paraphernalia, condition of

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Benefits of risk management for potash producers

By Joseph MacDonald, BA, FCIP, CRM

L

ike all organizations, potash producers pursue business objectives for the benefit of their organizations and stakeholders. But extended periods of drought disrupting reliable and sustainable supply of water for potash producers or consumers of potash; periods of heavy precipitation which flood

Risk can be created by countless existing and emerging exposures,

potash mines or remove arable land; volatility in the global market

potash, or other factors impacting supply and customer chains, let

supply/demand dynamics; and changes to laws, regulations and applicable tax regimes represent examples of factors that create uncertainty for potash producers.

Uncertainty arises from the likelihood of such factors resulting in business objectives not being achieved by potash producers and the consequences of this for these organizations.

including, but not limited to, strategic risks such as changes in socio-economic or political developments and global trade developments impacting the potash industry. Financial risks can result from the volatility of both the prices of supplies or the market price of

alone fluctuations in currency exchange rates and/or interest rates.

Uncertainty can also arise from operational risk resulting in disruptions involving operational systems, processes, or personnel impacting the achievement of business objectives.

In addition to these business risks, hazard risks such as natural catastrophes, mine accidents, cyber events, or global pandemics can

result in personnel injuries or loss, property damage, disruptions

to business and resultant net income loss, environmental, health or

This uncertainty is considered risk.

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safety events, either directly or indirectly through claims from third parties made against potash producers and/or their directors, officers and employees.

processes results in a holistic approach that can enhance and protect

These risks can impact the achievement of business objectives, and in the worst case, threaten the profitability or viability of potash producers.

risk-adjusted decisions, increasing management’s confidence in

an organization’s value and the interests of all their stakeholders.

Incorporating risk management into decision-making leads to pursuing value-generating opportunities, while understanding that potential downside risks are being effectively managed.

However, risk management provides a risk assessment process of identifying, analyzing, and evaluating all key risks facing potash producers, leading to the design and implementation of risk treatment measures which can effectively and cost-efficiently manage risk.

This furthers the achievement of business objectives and ensures

Through managing their key risks, potash producers can bring uncertainty (risk) to within tolerable levels, adding value by increasing the likelihood of achieving their business objectives, while building resilience to the potential negative impacts of risks, thereby protecting the value of their organizations.

result in potash producers reducing the frequency and severity of

resiliency and sustainability.

Designing and implementing risk treatment measures, including combinations of prudent risk retention, modification, non-insurance,

and insurance risk transfer – as determined by risk assessment – can loss events, protecting the health and safety of their personnel and operations, and improving their resilience to and discovery from

disruptions. This can lead to potash producers having more confidence that value-added opportunities are not missed, profitability is

Risk management is a process, best incorporated into an organization’s business management infrastructure and culture that provides planned systems of programs, policies, and procedures designed to assist organizations to identify, analyze, evaluate, and treat risks in ways that align with and support the achievement of their business objectives.

maximized, and operational costs are effectively controlled.

Ensuring risk management is an integral part of all decision-making

business objectives. l

Risk management can help potash producers comply with legal

and regulatory requirements, fulfill their social responsibilities, address the increased scrutiny of regulators, suppliers, customers, analysts, capital providers, employees, communities, and other key

stakeholders, and in doing so, maintain their ability to achieve their

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Ground-control management plan considerations

W

By Nathan Morgan, P.Geo, geomechanical specialist hen recommending and designing a ground-

will have knowledge on past and current ground-control issues

salt-mining operations, considering the oper-

ground-support systems, a ground-control plan should be de-

control management program for potash and ations experience and capabilities is critical. A

good understanding of who will be implement-

ing the plan, from the operators installing the ground control to

the geotechnical staff creating the procedures and policies, and the technicians installing and retrieving instrumentation data, is also important.

that will aid in the design. If minor differences exist between

signed that the mining operators are comfortable with installing. Including the operators in the design process will lead to a design that has consensus from the operations staff and will

ultimately lead to a ground-control plan that is installed according to design.

Implementation

Communication Good communication with the frontline operators who will be installing the ground control is imperative as these personnel

Ground-control management plans are typically developed to

prevent and control the progression of adverse ground conditions that create unsafe work environments and restrict accessibility to certain areas of the mine. Adverse ground conditions

are influenced by adjacent mining, overburden depth, geologi-

cal anomalies, changes in the mineralogy of the orebody, and

trust us with your success.

crystal sizes between beds. Mine operations can be impacted when these conditions are avoided by using methods such as

not mining or mining a different horizon to keep clear of adverse ground conditions; rehabilitating the adverse ground; or,

as the least disruptive option, installing ground support. When recommending ground control, determining the length for

which the area will need to be safely accessible, as well as the

overall impact that the ground control will have on production, is critical. With these considerations, the best recommendation can be made for the workers’ safety and mine operations.

RESPEC has tested, modeled, and observed salt and potash behavior from nearly every actively mined evaporite deposit i n t h e w o r l d . contact our award-winning potash experts

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RESPEC developed recommendations for the remediation of historic underground workings. Utilizing remote underground scanners to safely and efficiently scan and map, they determined existing conditions of the underground workings from the surface. With the collected, additional site, and public data, RESPEC completed a geotechnical study of the area and were able to provide recommendations to the client for a path

Instrumentation Instrumentation is an important component in the groundcontrol plan for monitoring and predicting adverse ground

conditions. A recommended monitoring program for ground

control should be manageable for the mining operations team.

One consideration is whether or not the mining operation has

the resources to collect and analyze the data. If the resources are unavailable, support should be included for monitoring

and analysis. The program should collect data on normal background areas, as well as predicted and active areas of concern.

With these areas monitored, adverse, anomalous ground conditions can be identified, and ground-control plans can be created

Potash cores getting ready to test in RESPEC’s rock mechanic creep testing machines.

Left: RESPEC’s creep testing machines. for specific areas. Predictions can be made regarding other areas of the mine that will likely have adverse ground conditions, and proactive recommenda-

tions can be given for specific ground control for these conditions. The instrumentation program will give the mining operations team predictive tools to determine the production rates that can be achieved, the mining rate that must

be achieved to avoid installing ground support, and how close production can

be to previously mined areas. Decisions can also be made on whether or not a new mining pattern needs to be developed, if the changing mineralogy will

affect the ground conditions, when additional ground control needs to be installed in an active area of concern, and when the adverse ground conditions will need to be rehabilitated. This data can be input into the numerical models for calibration.

RESPEC has tested, modeled, and observed salt and potash behaviour from

nearly every actively mined evaporite deposit in the world. Our approach has

successfully guided decisions regarding mine-design optimizations and provided a comprehensive assessment of the utility of existing workings and longterm stability, as well as suitable resource management. l

25

IT’S NEVER APPLES TO APPLES

By Andrea Hansen, B.Comm, CFP, GBA, Benefits Advisor at Sutton Benefits & Pension

A

s our economy picks up, Saskatchewan employers are finding it challenging to attract and retain good employees. Not only is there a small pool of qualified people in some trades, such as machining or engineering, but good employees are already well taken care of because smart employers know it costs much more to acquire good employees than to retain them. In times of uncertainty, employees are not willing to move unless the offer is really attractive.

However, a workplace “turnover tsunami” is predicted as COVID-19 subsides, presenting a ripe opportunity for attracting employees. How can suppliers that support the industrial, mining, and energy sectors prepare?

says, “The work they do as craftsmen is very rewarding and meaningful. The nature of their work is that they become fully

engrossed in the project they are working on. A part works or it doesn’t, which

makes the project’s success tangible.” Similarly, employers can communicate benefits

and pension in a tangible way. By translating benefits and pension into a dollars per

hour figure, the value of the total compensation can be better understood and appreciated.

Saskatchewan organizations pay, on average, the equivalent of 16.8 per cent of salaries in benefits, including pension contributions. Two of every five firms (40 per cent) spend 20 per cent or more1.

Do you know what your company currently spends on benefits, pension, and other rewards as a percentage of payroll?

What is your desired market position? Are you in the middle, spending 17 per cent of payroll, or do you need to lead to attract the top employees now looking elsewhere?

One manufacturing client states, “Our strategy is to actually pay above market because we believe if you do you are going to attract better people and retain them.”

One big frustration we hear from clients is that employees are not educated on their total compensation: “Wages are only part of their compensation, and they don’t understand the value of everything else.”

Ken Cenaiko, owner of Croatia Industries,

26

For example, a machinist: •W age: $40/hour •G roup Benefits Plan: Annual premium, about five per cent of payroll; company contributes 50 per cent of premiums, which equates to $1/hour •G roup Retirement Savings Plan: Company matches five per cent of contributions, which equates to $2/hour •H ealth Spending Account: Annual $500 allowance equates to $0.25/hour

•A dditional Benefits: Bonuses, service awards, boot and safety glasses allowance, training, sick days, etc. equal about $1.75/hour •V alue of Benefits: $5.00/hour Imagine being able to communicate the value of your total compensation in dollars per hour when hiring. Chances are that a prospect’s current employer hasn’t communicated the value of their benefits this way. Instead of that potential employee leaving the interview knowing only that the compensation is $40/hour plus benefits and pension, they will understand that the total value of the package is $45/hour.

What a powerful message demonstrating how much you invest in your employees and in their safety, health, well-being, and financial future.

Quality cannot be inspected into a product. It must be built in. As Jenelle Cooney, HR manager at Prairie Machine, states, “Employees that feel appreciated and valued, and that are provided a physically and psychologically safe work environment, tend to go the extra mile for their employer.

The result is higher-quality products, happier customers, and continued company growth. Not to mention higher employee morale and loyalty.”

The whole is greater than the sum of its parts. We know benefits comparisons will never be apples to apples, but employers that can articulate the value of the whole “apple cart” may be better equipped to take advantage of the potential turnover tsunami and add some great people to their teams.

(Saskatchewan HR Trends Report,

1

Fall 2019). l

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www.HDengineeringDesign.com 27

By Derek Hoffman and Hasith Andrahennadi

Masterful Procurement of Master Goods/Services Agreements

A

master procurement agreement

because they are not objective, one-size-

dard’ Master Agreement clause is the lim-

tract which governs the rela-

all agreements. A few examples of ‘stan-

caps, the liability owed from one party to

indemnification, forum/governing law,

under the Master Agreement. The lim-

clauses, the administration of which can

different forms, including no cap on the

ter Agreement to another depending on

plier, capping the liability of a party to the

(“Master Agreement”) is a con-

tionship between a supplier and

buyer regarding the purchase of

goods and/or services. Typically, a Master

Agreement is a large template document

with many standard clauses which is provided by a mining company to suppliers

regarding the company’s periodic pur-

chase of goods and services from such suppliers.

The terms and conditions of a Master Agreement are typically drafted by

the buyer, and therefore the ‘standard’ clauses of a Master Agreement tend to be

more favourable to the buyer (‘standard’ in this case refers to certain common

clauses that are often found in procurement agreements and not necessarily universally agreed wording for such clauses).

Although ‘standard’ clauses may be common, their interpretation and application varies from one agreement to another

28

fits-all contract terms that apply across

itation of liability clause which defines, or

dard’ clauses are limitation of liability,

the other party for losses that may arise

notice of claim, and intellectual property

itation of liability clause can take many

significantly vary from one form of Mas-

liability of the mining company and sup-

the circumstances.

amount of the contract price (or a percent-

Some ‘standard’ clauses contained in a

able through insurance coverage. On one

Master Agreement may be neutral and

equally affect both parties to the contract, while other ‘standard’ clauses may be biased and advantage one party over the other. Buyers and suppliers are often able

to find compromise on such clauses, however sometimes buyers have little flexibility for negotiation of, and amendment to,

a Master Agreement due to such factors as

the buyer’s scale of operations and internal contract management policies.

As mentioned, one example of a ‘stan-

age thereof), or a specified amount availhand, a limitation of liability clause which

limits a supplier’s liability to the contract price might appear to be unfavourable to

the supplier since it is at risk of losing all benefits gained under the contract. On

the other hand, the mining company may

bear a greater risk than the supplier if liability is capped at the contract price due

to indirect costs caused by delays from

defective work or having to procure alternative goods or services.

Another example of a ‘standard’ Master

Agreement clause is the indemnification

sequences for both the buyer and sup-

an advantage to one party at the expense

supplier agree that one party will com-

most technically qualified for a scope of

that parties can make to mitigate the ef-

clause where the mining company and pensate the other party for losses caused

by the first party. Similar to limitation of liability clauses, an indemnification

clause can take different forms, including requiring the supplier to indemnify

the mining company for any loss or costs

incurred by the mining company. Parties often mitigate such broad supplier indemnity obligations by including exceptions to certain liabilities which are otherwise

subject to indemnification, such as an exception to liability for consequential losses. Exceptions to supplier liability can

help mitigate the risk of a broad supplier

indemnification obligation and help the

parties reach a compromise on the indemnification clause in a Master Agreement.

Master Agreement clauses that are too unfavourable to suppliers may have con-

plier. For example, suppliers who are the

work may be discouraged from bidding on the scope of work if they are unable to

mitigate the risk from unfavourable terms

of a Master Agreement. Buyers may receive higher bid prices from suppliers for scopes of work than otherwise might be

the case due to supplier attempts to offset

unfavourable terms of a Master Agree-

ment. In other words, other contract terms may be impacted in order to counteract

unfavorable ‘standard’ clauses in a Master Agreement.

of the other party, as well as adjustments fects of such disadvantages. Various industries and jurisdictions sometimes ad-

dress such ‘standard’ clauses differently in Master Agreements. As a result, parties

should be aware that ‘standard’ clauses are not standard at all, but rather they require careful consideration during Master

Agreement review and negotiation. This

ensures the application of such clauses during contract performance do not give rise to avoidable contract disputes or un-

intended consequences, and also makes

There are several ‘standard’ Master Agreement clauses which may be drafted with

administration of such Master Agreements easier and beneficial to all parties.

For more information, contact the following: Derek Hoffman – derek@hoffmangroup.ca Hasith Andrahennadi – hasith@hoffmangroup.ca l

innovative. practical. collaborative.

Innovative and collaborative people providing practical legal advice and solutions.

DEREK HOFFMAN

HASITH ANDRAHENNADI

HOFFMAN GROUP 300 - 728 Spadina Crescent East, Saskatoon, SK S7K 3H2

derek@hoffmangroup.ca

306.713.3700 29

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