Potash in the Province 2014

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POTASH in our Province Canpotex represents stability in a volatile potash market

By Jeannie Armstrong SP/L-P Specialty Products Editor One word best describes the market conditions impacting the potash industry over the past five years: volatile.

Steve Dechka, president and CEO of Canpotex, said that “despite recent market volatility, Canpotex will have a record year, volume-wise, in 2014. Through all of this uncertainty, our customers continued to trust Canpotex based on our long-standing relationships and our history of providing competitive prices, quality product and reliable service.”

Canpotex is the international marketing and logistics company that works on behalf of its three shareholders: Agrium Inc., The Mosaic Company and Potash Corporation of Saskatchewan Inc. Canpotex sells Saskatchewan potash exclusively into offshore markets on behalf of its three shareholders to large and sophisticated buyers in competition with potash producers primarily in Russia, Belarus, Israel, Jordan and Germany. Canpotex also stands out in the world market as the only offshore potash exporter offering 20 different grades of potash to its customers.

Canpotex has positioned itself as a consistent and reliable supplier of potash to offshore markets. “In a time of great volatility, Canpotex has continued to be a reliable partner. Our customers are very happy knowing they have a stable situation, a known situation. They know Canpotex is a constant that they can count on and trust. That’s really key to our success and why we have customers who trust us with 100 per cent of their imports,” said Dechka.

Indeed, in June of 2014, Canpotex achieved an important milestone in its 42-year history shipping its 200millionth tonne of Saskatchewan potash. “If you loaded 200 million

tonnes of potash onto one train, it would be over 30,000 km long and stretch three-quarters of the way around the world,” said Dechka.

“The majority of that tonnage has gone to the same customer base that we have built up over the past 42 years. More than half of our customers buy 100 per cent of their potash from Canpotex. No other competitor can say that. Our customers can buy from anyone, but they choose to buy from us. It’s really indicative of the loyal base of customers that we have built up in over 30 different markets. Relationships are key to our business success.”

How has Canpotex built such an enviable brand for Saskatchewan potash? Dechka said, “We have worked very hard at making sure that we listen more than we talk. We are responsive to customers’ needs, whether it be on delivery, or product type or quality issues. We make sure they are looked after. They are the most important part of our business.”

International demand for potash has seen growth in 2014, which Dechka finds encouraging. “After a very difficult second half in 2013, we’re seeing a good resurgence in demand and a gradual improvement in prices after the collapse last year. The challenge for Canpotex will be to keep that going in 2015, when customers will be restocking,” said Dechka.

Canpotex eliminates uncertainty for its customers through its industryleading logistics system. “We continue to invest in our logistics to make sure that we are the most efficient shipper and the best alternative for both our customers and our shareholders,” said Dechka.

Canpotex’s sophisticated transportation system includes a specialized fleet of 5,400 railcars that delivers Saskatchewan potash to the company’s terminals in North Vancouver, B.C. and Portland, Oregon.

The Ultra Regina is the newest ocean vessel to join the Canpotex fleet. The 61,000 dead weight tonnage dry cargo bulker will make its maiden voyage from Vancouver to India to deliver a shipment of Saskatchewan potash. (Photo: Canpotex)

In June of 2014, Canpotex shipped its 200 millionth tonne of Saskatchewan potash to customers in international markets. (Photo: Canpotex) From these terminals, potash is loaded onto Canpotex’s fleet of ocean vessels for delivery to more than 80 ports around the world.

“Our goal is to continue to increase the size of our trains. They’ll continue to be the longest, heaviest bulk trains moving,” said Dechka, adding that Canpotex has placed an order for 700 additional railcars. “Some of those new railcars will replace older railcars in our fleet.”

In 2012, Canpotex opened a stateof-the-art railcar maintenance and staging facility in Lanigan, Sask., where every railcar in the fleet is serviced at least twice a year. “Having the railcar facility allows us more control over our fleet and ensures we can maintain efficiencies,” said Dechka.

After the potash arrives by rail at the company’s terminals in North Vancouver or Portland, it is loaded onto ships for overseas destinations.

Canpotex has recently added 17 new bulk transport ocean vessels under long-term charter arrangements to its fleet, with one more expected next year. The company operates approximately 225 ocean vessel voyages per year, with 45 to 50 vessels operating at any given time.

Dechka added, “We are also increasing the size of our vessels.

For example, we were able to send Panamax vessels (vessels capable of passing through the Panama Canal) to India for the first time this year, carrying an average of 60,000 to 80,000 tonnes to be unloaded at one, or at the most, two Indian ports. That is significantly more cost efficient than having to ship potash to India on 35,000 to 40,000-tonne vessels that stop at five Indian ports. It’s just one way we try to make our customers and our shareholders more competitive.”

Three years ago, Canpotex invested

approximately C$50 million to upgrade its Neptune Terminal in North Vancouver. Now the company has undertaken an expansion of its Portland Bulk Terminal facility in Portland, Oregon. “We’re spending about US$140 million at Portland, focusing on the handling of our white product which is a growing market.

The objective is to make the facility more efficient and improve service to our customers,” said Dechka. In Portland, Canpotex is investing in a new high-capacity shiploader, highspeed conveyers and a new warehouse specifically designed for white product.

Canpotex continues to finalize the necessary commercial agreements for a potential Greenfield potash terminal at Prince Rupert, B.C., which would give Canpotex three separate gateways and three separate rail lines to the West Coast. Dechka said the proposed facility would be a high-throughput terminal with a 12-million tonne capacity, designed to satisfy the company’s needs for the next 30 or 40 years.

“We will be doing an analysis each year, and a decision to proceed with the project will be based on a variety of commercial factors, including projections on the state of offshore potash markets. It’s been a seven-year process and a C$50 million investment to get to this point, so the timing must be right,” said Dechka.

The state-of-the-art terminal is anticipated to cost approximately C$775 million. “It will give us a third rail link at a time when rail capacity in Canada is under pressure. It’s not a cheap option, but it will keep us competitive in all respects, and allow us to better serve our customers,” said Dechka.

ABOUT THIS CONTENT: These stories were produced by LP-SP Specialty Products to promote awareness of this topic for commercial purposes. The Leader-Post editorial department had no involvement in the creation of this content.

Continental Mine & Industrial Supply Ltd. 1702 Alexandra Avenue Saskatoon, Saskatchewan S7K 3C5 Phone: (306) 975-1944 Fax: (306) 975-3998 Website : www.cmiindustrial.ca Continental Mine & Industrial Supply is an application focused business based in Saskatchewan. We specialize in solving tough problems with practical solutions.

Our mission is to provide 100% Customer Satisfaction for all requirements relating to the Mining, Construction and Industrial Business Sectors. This will be achieved by partnering with our customers and suppliers to ensure the most cost effective solution ranging from retail supply of equipment and components to optimizing standard equipment and ultimately providing a custom designed solution to meet their unique operational requirements.

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POTASH in our Province Royalty system complex for a reason

By Andrew Livingstone For SP/L-P Specialty Products The regulatory framework governing royalties and taxes from Saskatchewan’s potash industry is the product of ongoing reconsideration and revision, and is designed to reward the province for the extraction of its potash while still encouraging investment from the industry. Recently, however, the system has suffered from intense criticism, with detractors calling it incoherent and in need of change.

“I can certainly tell you that the system itself is relatively complicated, but it’s complicated for a reason,” said Hal Sanders, assistant deputy minister of Minerals, Lands and Resource Policy at the Ministry of the Economy. “It’s designed around maximizing revenues to the province while also taking into account the different productivity levels of mine sites, the potential ups and downs of the global market and other similar factors. When you design systems to accommodate all of those different variables, they do get complicated, and certainly the Saskatchewan potash system is no exception.”

Although the system is complex, Sanders said that the companies that operate in Saskatchewan understand it intimately. “Existing producers operate within the current system and understand it, and have been doing that for quite some time,” he said. “For somebody coming in from the outside unfamiliar with the system, of course, there is a little bit more of a learning curve.”

“If you had to cite a weakness, obviously the complexity of the system is an obstacle for anybody coming in and trying to become familiar with it,” Sanders said. However, “Once they are familiar with the system, they understand the logic of it and how it’s designed around the variations in mine development and economic circumstance, like potash demand and prices as well as the costs of production.”

Rather than unbalancing the royalty and taxation system, its detailed processes and considerations instead create a more flexible process. “When you have companies that are in higher profitability positions, we take a higher percentage of the profits,” said Sanders. “That’s how many of our taxation systems are designed: with the notion that, if there’s upside, the province wants to share in that and, when there’s downside, we take less, and that’s a very significant component of our systems.”

The core principle should be easily recognizable to those who pay income taxes. “There are some marginal

rate components and there are some incentives built in,” Sanders said.

“Similar to the personal income tax system, the Saskatchewan potash tax system certainly scales at different levels of prosperity.”

In addition to the system’s ingrained flexibility, it is served by a continual review of the conditions that may demand adjustments to the regulatory structure. “The bureaucracy is tasked with the notion of always monitoring our royalty and taxation systems,” said Sanders. “We monitor the marketplace, and we’re always doing interjurisdictional comparisons to make sure that Saskatchewan is competitive and that the government is getting its fair share of revenue from the resource, which is non-renewable. In that respect, we’re in a continual movement to improve our taxation systems, and it doesn’t matter whether it’s potash, oil, uranium or any other commodity that we produce.”

“We examine that change in terms of its competitiveness with other jurisdictions, in terms of whether or not we feel we are adequately getting the government’s share of revenue from a resource that, obviously, is nonrenewable,” Sanders said, “then look at the future implications for things like new mines and the growth potential.”

There is also an ongoing dialogue with industry regarding the changes that the private sector would prefer to implement. “Obviously, industry will come in and offer their opinions on changes they would like to see, and we examine those,” Sanders said. “But, for the most part, if we make changes, there’s a consultative process with industry.”

Finally, having passed through consultative and analytical phases, a new regulatory package must be examined and approved by the government if it is to be enacted. “We would have to attempt to seek the approval of our cabinet in government to make a change to a system,” said Sanders. “The royalty regimes are embedded in regulations and in statute, and regulation and statute are always approved by cabinet.”

This is the process that has, through gradual refinements over decades of changes in the industry and the global economy, resulted in the current royalty regime. “The foundations of this system have been around since the 1970s,” Sanders said. “There were agreements called the Potash Resource Payment Agreements, and they evolved into regulatory provisions that have been around since.”

The most recent changes were devised to address the companies that were newly invested in mining potash

in the province.

“Because we had a history of decades of the producers that we see today — Potash Corp, Mosaic and Agrium — the prospect of new companies coming into the market meant that we had to review our regulatory framework and make sure that it properly addressed the royalty and taxation situation for somebody coming in fresh. We did require some modifications, but, truthfully, these were modest in nature and primarily were to accommodate the prospect of those new producers.”

Currently, the Saskatchewan’s potash royalty system is designed to Saskatchewan potash maximize revenues for the province while taking into royalty and taxation account variations in mine development and economic system still claims a circumstance, such as costs of production and potash higher percentage demand and prices. Pictured above is Mosaic’s Esterhazy of gross sales than mine. Photo courtesy of the Saskatchewan Ministry of the any other jurisdiction Economy in the world. Said Sanders, “We can do that because of the for instance, New Brunswick. So, to get resources that we have: we have a mines introduced, sometimes other massive potash belt extending from jurisdictions offer a great deal more one side of the province to the other incentives, like lower royalty rates, in along a corridor, in seams that are order to bring companies in.” relatively stable that allow these potash Saskatchewan’s potash resource, mines to operate fairly economically however, suffers from no lack of relative to other potash mines interest from prospective producers throughout the world.” who are quite willing to submit to the “Most jurisdictions only charge a province’s royalty and taxation system royalty, which is generally a smaller to profit from its potash. “We have a set percentage of total sales,” Sanders very large potash belt and an amazing said. “However, this is changing number of companies looking at the in some areas, like in Israel, where prospect of potash development,” they’re looking at implementing a Sanders said. “We have a lot of land profit component to their system. That under holding right now where some would be something closer to ours, advanced exploration continues to go on to explore the possibility of entering but, looking at different jurisdictions outside Canada, there aren’t really any the potash market.

“Our most recent company to enter direct comparisons. Saskatchewan has the market in Saskatchewan would more mines than anywhere else in the world, it produces the most potash, and be K+S through their new mine at our system is specifically tailored to the Bethune. That solution mine will come along in the next few years, resulting economics.” but it’s indicative of the fact that Domestically, Saskatchewan’s you can certainly argue about the wealth of potash does not allow for complications of the system, but it’s much comparison either. “The only not precluding new investment in the other [potash-producing] province industry, be it through expansions of in Canada is New Brunswick,” said existing producers or development Sanders. “Because so many factors go from companies new to the province,” into these things, the fact that you Sanders said. can develop mines here and produce potash for possibly 100 or 200 years, Saskatchewan mines tend to be of a different magnitude from a mine in,

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POTASH in our Province Des Nedhe forges new paths

A deep focus on the needs of Saskatchewan’s mining sector is driving business at Des Nedhe Development.

It has been an exciting period at English River First Nation’s economic development arm, based out of Grasswood Junction on the outskirts of Saskatoon. The 135-acre business hub is home to Des Nedhe’s diverse group of businesses in mining, construction, retail, property management and real estate development.

“We know what’s important to our province’s mining companies,” said Gary Merasty, who took on the roles of president and chief operating officer in 2013. “Safety, reliable service, competitive pricing and collaboration

with First Nations are key, and we’re building our businesses to meet these needs, today and down the road.”

Merasty, formerly vice-president of Corporate Responsibility and Communications at Cameco, is just one addition to a management team that has significantly augmented its strength and experience. Former English River Chief and longtime council member Alfred Dawatsare was named chief executive officer of Des Nedhe in May of 2013. His hiring of Merasty brought extensive experience in leadership and economic development, as well as essential knowledge of mining operations and government and industry relations.

L to R: Shane Shircliff, VP Corporate Development & Finance; Kathy Berg, VP Corporate Services; Gary Merasty, President and COO; Alfred Dawatsare, CEO; Rob Stanger, VP Construction & Mining; Jamie Dickson, VP Legal; Doug Reynolds, VP Corporate & Community Relations

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Tron Construction & Mining – building the future

Des Nedhe’s largest business line is its construction & mining division, which includes Tron Construction & Mining (formerly Tron Power), a company that has nearly three decades of experience providing infrastructure and construction services to the mining industry.

There has been much growth and activity at Tron since English River acquired its assets and management in 1997. Tron teams have contributed to the development and maintenance of uranium mines and mills across Saskatchewan’s northern Athabasca Basin region, and, more recently, at potash mine sites in the province’s southern half. A commitment to Aboriginal training has built a substantial northern workforce and contributed to economic growth and well-being in many remote communities.

Rob Stanger was named vicepresident of Des Nedhe Construction & Mining and president of Tron in August of 2013. Stanger has been involved in mining for over 30 years, including a lengthy stint with Cameco, where he was involved in numerous projects, heading process development and regulatory compliance, civil design, major projects and more.

Vice-president David Hemeon and senior project manager Garnet Senger complete Tron’s executive, both with significant and wide-ranging experience in mining, construction, project management and Aboriginal workforce development.

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Soon after, Shane Shircliff, Rob Stanger and Jamie Dickson joined Doug Reynolds and Kathy Berg to round out an ambitious executive team with a wide variety of skills, strengths and experience, as well as a commitment to exploring new prospects across the province in multiple sectors.

A little farther down Grasswood Road, Minetec (est. 2002) provides products and services to mining operations across Saskatchewan.

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Acquired by English River through Des Nedhe in 2009, Minetec is continually modifying and increasing its product line and inventory to meet the changing needs of companies serving the mining sector.

The company boasts the largest drill steel inventory in the province and unique custom, rebuild, recertification and support parts in stock programs.

Alliances with Tracks & Wheels, Amalgamated Mining Services and Mansour Mining Technologies expand Minetec’s capacity to provide specialized underground equipment, parts and equipment support, ground support solutions and more.

Original company founder Ron Collette returned in October of 2013 as Minetec vice-president. Collette has dedicated his entire career to the mining industry, as mining engineer, project manager, executive, entrepreneur, explosives distributor and more. Over the years, he has gained a wide range of expertise in both underground and open pit mines and large-scale contract management, overseeing feasibility studies, mine and quarry management, procurement and safety.

Marc Collette, Damon Tupper and Lyle Gareau add extensive operations, procurement, inventory management and warehousing experience. The team’s distinct combination of handson experience in construction, mining, engineering, direct mine supply and procurement policies and procedures enables Minetec to offer top quality services and advice for the many complex project conditions faced by the province’s mining industry.

L to R: Damon Tupper, Sales Manager; Ron Collette, Vice President; Lyle Gareau, Territory Sales Representative; Marc Collette, Operations Manager

A continuing plan for growth “Our team and our companies recognize this as a tremendous time of opportunity in the mining and industrial sectors,” Merasty said. “By building high-performing companies and training First Nations employees, we are in a position to form true partnerships with strong, successful and forward-thinking resource companies.

“The first step was to ensure Des Nedhe and our member companies are ready for the future. Today, we have the people and infrastructure in place and are looking forward to continued growth and development,” he said.

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BUILDING THE FUTURE Tron has been a significant player in Saskatchewan’s mining industry for nearly three decades.

We deliver top-quality infrastructure and construction services to a variety of projects and are proud to provide valuable training and employment opportunities to Aboriginals across our province.

An English River First Nation Company

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New PotashCorp CEO Building on Strong Foundation

After almost four months as President and Chief Executive Officer of PotashCorp – the largest potash producer in the world by capacity and among the largest in nitrogen and phosphate – Jochen Tilk sees a world of opportunity ahead.

“This company has remarkable assets and natural advantages in each of our three nutrients – especially potash,” says Tilk. “We’ll continue to use those advantages to improve our competitive position and build an even stronger company for the future.”

Headquartered in Saskatoon, PotashCorp’s first 25 years saw only two CEOs – first Chuck Childers, followed by Bill Doyle. Tilk intends to maintain the vision established by his predecessors while exploring ways to optimize the company’s performance now that its $8.3 billion potash expansion program is nearly complete.

“Looking ahead, we see demand growth for our products and believe no other company in the fertilizer industry is better positioned to respond,” he says. “We have the flexibility to grow with demand while remaining a low-cost supplier to all our key markets – whether that market is in Brazil or Indiana.”

Although Tilk is new to PotashCorp, he brings 30 years experience in the mining industry. Born and raised in Germany, Tilk has worked in places

as diverse as Brazil, Finland, Panama and Turkey. His leadership in safety and track record in building worldclass operations are well known.

He believes that experience can help make a strong company even stronger.

“It’s a dynamic industry and as a global company we need to continually evolve,” says Tilk. “There are always opportunities to improve what we do and how we do it – whether it’s in product innovation, mine safety or technology – exploring and evaluating these opportunities is essential.”

Strength in People While PotashCorp’s resource base is its primary strength, Tilk has quickly identified the company’s people and approach to human resources as another very important asset.

The company has five potash mines in Saskatchewan and one in New Brunswick – and employs more than 2,700 people in Canada. It also has four nitrogen and seven phosphate operations in the US and Trinidad, bringing its employee base to approximately 5,000 people.

“As I’ve toured our facilities, I’ve discovered PotashCorp employees have a remarkable mix of experience and energy,” says Tilk. “It’s our people who will elevate this company to the next level.”

In 2014 PotashCorp was named one of Canada’s Top 100 Employers, a Top Employer in Saskatchewan and one of Canada’s Top Employers for Young People. Providing a long-term career path for its employees is important to PotashCorp’s strategy.

The company continues to focus on strengthening working relationships with Aboriginal organizations and increasing First Nations and Métis representation, both as PotashCorp employees and suppliers.

As the fastest growing demographic in Saskatchewan and a key part of the province, First Nations and Métis individuals are an important part of PotashCorp’s recruitment focus. In addition, all PotashCorp employees in Saskatchewan take Aboriginal awareness training.

A Commitment to Community Although the responsibilities of leading a global company require him to spend significant time on the road, Tilk has quickly adapted to his new home province and shares the company’s commitment to community involvement.

“It’s immediately clear when you arrive that PotashCorp has a special place in the province of Saskatchewan as a competent mine operator, a significant employer and an active community member,” says Tilk. “I’m looking forward to continuing to build on these strengths.”

PotashCorp is committed to maintaining strong relationships and, with community building and food security – both locally and globally – as key priorities. In recent years, PotashCorp has expanded access to food through school nutrition programs in Saskatoon and Regina, and partnered with food banks across the province to fight hunger locally.

As part of its multi-year partnership with the international development organization Free The Children, PotashCorp is bringing We Day to Saskatoon on November 7. The allday stadium event aims to educate and empower 15,000 youth around important global issues, including food security.

In 2013 the total value of PotashCorp’s community investment program was $31 million, supporting organizations and initiatives that improve the well-being of the many communities where it operates.

PotashCorp continues to invest in the province of Saskatchewan to improve the lives of those who play an important role in the sustainability of its business – from the investors who provide capital to grow its business, customers who rely on its essential nutrients, to the employees who proudly play a role in global food security, and the communities that provide the support for its business.

Sara Rosetown, Saskatchewan

Sara Rosetown, Saskatchewan

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POTASH in our Province

By Mike Shiplack For SP/L-P Specialty Products The overall economic impact of potash in Saskatchewan is staggering. Dozens of villages and towns have seen new opportunities and new life come to their municipalities. Hundreds of millions of dollars are being spent to ensure that the future of Saskatchewan’s communities continues to shine brightly. Here is just a handful of success stories about how the potash industry has supported the many communities that its employees call home.

blood drives two or three times a year. They’ve also sponsored our heritage centre, which was the old CP station, with an interactive potash display.”

Major projects and donations by PCS include a $1M donation for a medical clinic located in Lanigan, which is run by five of the surrounding municipalities.

In 2002, the Town of Lanigan received $500,000 to help construct the Arena Hall Complex and, recently, the ice plant was replaced, using a $50,000 donation.

The town is currently raising funds to match the $100,000 PCS donation for a new fire truck.

The Town of Lanigan

The Village of Vanscoy

Over 325 people working at the Potash Corporation of Saskatchewan (PCS), and many of them call Lanigan home. In 2011, the town grew to 1,390 people and continues to grow today. In order to support this growth, PCS has donated millions of dollars to help nurture a bright future for this central Saskatchewan community.

“PCS has supported the community very well and has been a good corporate citizen,” said Andrew Cebryk, the mayor of Lanigan for the last three years. “They give a lot of donations to the service clubs in the community. They support the local food bank and youth groups, and they sponsor events like

As Agrium begins to expand its potash mine just outside the village of Vanscoy, the community is already experiencing the benefits. More than providing donations to help strengthen the community, the spin-off of the project has brought much economic growth to the local small businesses.

“There are a lot of the staff at Agrium that live within the village and in the surrounding area, so that helps bring a sense of community here,” said mayor Robin Odnokon of the village of Vanscoy.

She also runs The Robin’s Nest Café in town. “The workers frequent all of the businesses within the village, and Robin’s Nest Cafe does a lot of catering

The community of Vanscoy and the city of Saskatoon are experiencing boosts to their economic growth and community involvement stimulated by Agrium and its employees. Pictured above is a group of Agrium personnel that volunteered for a Habitat for Humanity build in Saskatoon. Left to right are: Connor Regier, Jim Sunagawa, Achint Rastogi, Kevin Blezy, Laila Siddiqui, Hasan Rahman, Andy Ho and Jenny Porteous. Photo courtesy of Agrium

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POTASH in our Province

Potash boosts the growth of Saskatchewan municipalities

The construction of the BHP Billiton mine will help strengthen Humboldt’s future. In September, BHP Billiton provided the Humboldt District Hospital Foundation with $88,000 for its most-needed item — a portable X-ray machine. Photo courtesy of Humboldt District Hospital Foundation

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to the mine for functions and meetings year round. Some of the contract workers stay at the Vanscoy Hotel, and enjoy the social atmosphere and local hospitality. Even the Tempo gas station has seen growth as workers stop for gas and pick up confectionary items.”

Major projects and donations

by Agrium include the donation of $100,000 and land to build a lagoon outside of town. The recreation board of Vanscoy received $50,000 for the Shiverdome project so it could purchase a portable artificial ice plant.

Blucher RM No. 343 Located in the heart of potash country, the RM of Blucher reaps the benefits of two PCS mines: Allen and PotashCorp is proud to support local communities and Saskatchewan culture, like the annual Patience Lake. Both contribute PotashCorp Children’s Festival in Saskatoon. One of the most popular activities is the PotashCorp to the growth and prosperity Fossil Find. An interactive exhibit that mixes fun with a hands-on educational experience, Fossil of the villages of Allen, Clavet Find lets kids hunt for fossils, which they can take home — all while learning about phosphate and Bradwell. The relationship mining and geology. PotashCorp employees, like the one shown, volunteer their time to help between the RM and PCS is provide information and answer questions from kids and parents. Photo courtesy of PotashCorp. symbiotic in nature as they work together to help keep and donated the Jaws of Life to the Humboldt first both mines and the community safe. responders.

“The biggest contributions have been in both Mosaic has also made several donations to the ambulance vehicles and fire trucks — we are the first community, including funds for improvements to the to respond if they need someone on the scene,” said Humboldt Mohawks football field.

Scott Doran, administrator for Blucher for the last six years. “PCS has upgraded our equipment and, when Town of Allan dealing with small municipalities, coming up with the funds for this equipment is expensive. It’s been PCS Allan is one of the oldest potash mines in invaluable as they also help train these volunteer fire Saskatchewan. Since 1968, the mine has brought many fighters and emergency first responders. We don’t economic opportunities to the Town of Allan. One of have facilities like this at our disposal all the time. the most important contributions happened before the You always hope you don’t have to use these services, mine was built. The potash company helped to provide but it’s great that our volunteers have this training.” a local source of drinking water, which had previously Major projects and donations by PCS include been pumped from Saskatoon’s water treatment plant, contributing in access of $100,000 for new equipment more than 50 km away. for emergency services. PCS also provided facilities for “Allan’s biggest growth was when the mine first came training and aid for emergency response teams. in the mid-60s,” said mayor Steve Peters. “When they brought people in for the build and actual production lines, many people from town got jobs in the mine.

City of Humboldt K+S Potash Canada is active in sponsoring youth, education and environment through events such as community powwows There were few commuters and, at that time, there and the Moose Jaw Health Foundation telethon. Above, dancers take part in the First Nations University of Canada powwow in The impact of potash mining isn’t new to the city of were lots of young fellows with young families coming Regina. Photo courtesy of K+S Humboldt. With a population of over 6,000 people, to town.” roughly 30 to 40 per cent of the workers at the PCS Major donations from PCS Allan include: the Lanigan mine live in and around the Humboldt area. installation of drinking water facilities; a $100,000 The construction of the BHP Billiton mine will also donation to engineer the upgrades and demolish the help strengthen Humboldt’s future in Saskatchewan. old change rooms in the Communiplex; the donation of “We’re right in the middle of some pretty major $52,000 for a new Zamboni; and an additional $42,000 potash mining activity,” said Malcolm Eaton, mayor for a geothermal heat exchange in the sports facility. of Humboldt for the last eight years. “They all impact The Town of Allan is currently raising funds with help our community. All of the potash companies have from PCS to build a new Town Fire Hall. been very generous and helpful. The important thing is that they don’t do it all, and they expect City of Moose Jaw the community to be involved in the fundraising for many projects.”

The current construction of the K+S Legacy Mine Recent projects and donations include: outside Moose Jaw will bring a second potash mine to BHP Billiton — an $80,000 contribution to the this growing city. The economic spin-off for the hotels Humboldt and District Hospital Foundation for a new and restaurants in this tourist-driven community is x-ray machine; a $50,000 donation to repurpose an already making an impact. With the Mosaic Potash mine old bank building into an art gallery and another a long-time corporate area resident, Moose Jaw has $50,000 to the senior centre. seen plenty of economic opportunities and community PCS Lanigan – the company matched a $500,000 support. contribution for furniture and equipment for the “We’re very proud of how our city has grown. We new hospital in Humboldt, provided a $75,000 want employees to know that we have all the amenities sponsorship deal to bring the National Junior you’ll find in any city, and hope they choose Moose Jaw Hockey Championship’s Royal Bank Cup to town, to call home,” said Deb Higgins, mayor of Moose Jaw for the last two years. “Our proximity to the Mosaic mine, and their involvement has always been strong.

Whether it’s health, sports or recreation, we’ve seen Mosaic has contributed to numerous community initiatives in Saskatchewan, including a recent donation to Regina’s Salvation support from Mosaic and now K+S.” Army in support of a new student lunch program. Photo courtesy of Mosaic Major donations from Mosaic include the purchase of naming rights to Mosaic Place, a multiplex used for numerous concerts and Environmental • Mining • Hydrogeology • Geotechnical events throughout the year.

• Permitting & Licensing • Project Management • Transportation (Rail, Roads, Air) • Municipal Engineering • Planning & Land Numerous donations have Development • Risk Analysis • Rights of Way & Land Acquisition ISO 9001:2008 Certified also been made to refurbish and replace equipment at Moose Jaw Union Hospital, and to assist with the construction of a new • Dynamometer — load testing up to 5000 HP regional hospital in the city.

• 10’VPI System In its short time in the • Dynamic Balancing to 25,000 lbs.

Tailored Engineering and province, K+S Canada has already been active • Electric Motor Rewinding Environmental Solutions in sponsoring events • DC Motor Repair That Embrace Each throughout Moose Jaw, • Complete Machine Shop Facilities such as the annual powwow Client’s Values • Complete Fabricating Shop and the Hospital Foundation • New Motor & Drive Sales telethon.

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S aturday, O ctober 25, 2014

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POTASH in our Province

By Mike Shiplack For SP/L-P Specialty Products The overall economic impact of potash in Saskatchewan is staggering. Dozens of villages and towns have seen new opportunities and new life come to their municipalities. Hundreds of millions of dollars are being spent to ensure that the future of Saskatchewan’s communities continues to shine brightly. Here is just a handful of success stories about how the potash industry has supported the many communities that its employees call home.

blood drives two or three times a year. They’ve also sponsored our heritage centre, which was the old CP station, with an interactive potash display.”

Major projects and donations by PCS include a $1M donation for a medical clinic located in Lanigan, which is run by five of the surrounding municipalities.

In 2002, the Town of Lanigan received $500,000 to help construct the Arena Hall Complex and, recently, the ice plant was replaced, using a $50,000 donation.

The town is currently raising funds to match the $100,000 PCS donation for a new fire truck.

The Town of Lanigan

The Village of Vanscoy

Over 325 people working at the Potash Corporation of Saskatchewan (PCS), and many of them call Lanigan home. In 2011, the town grew to 1,390 people and continues to grow today. In order to support this growth, PCS has donated millions of dollars to help nurture a bright future for this central Saskatchewan community.

“PCS has supported the community very well and has been a good corporate citizen,” said Andrew Cebryk, the mayor of Lanigan for the last three years. “They give a lot of donations to the service clubs in the community. They support the local food bank and youth groups, and they sponsor events like

As Agrium begins to expand its potash mine just outside the village of Vanscoy, the community is already experiencing the benefits. More than providing donations to help strengthen the community, the spin-off of the project has brought much economic growth to the local small businesses.

“There are a lot of the staff at Agrium that live within the village and in the surrounding area, so that helps bring a sense of community here,” said mayor Robin Odnokon of the village of Vanscoy.

She also runs The Robin’s Nest Café in town. “The workers frequent all of the businesses within the village, and Robin’s Nest Cafe does a lot of catering

The community of Vanscoy and the city of Saskatoon are experiencing boosts to their economic growth and community involvement stimulated by Agrium and its employees. Pictured above is a group of Agrium personnel that volunteered for a Habitat for Humanity build in Saskatoon. Left to right are: Connor Regier, Jim Sunagawa, Achint Rastogi, Kevin Blezy, Laila Siddiqui, Hasan Rahman, Andy Ho and Jenny Porteous. Photo courtesy of Agrium

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POTASH in our Province

Potash boosts the growth of Saskatchewan municipalities

The construction of the BHP Billiton mine will help strengthen Humboldt’s future. In September, BHP Billiton provided the Humboldt District Hospital Foundation with $88,000 for its most-needed item — a portable X-ray machine. Photo courtesy of Humboldt District Hospital Foundation

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Postmedia Saskatchewan

to the mine for functions and meetings year round. Some of the contract workers stay at the Vanscoy Hotel, and enjoy the social atmosphere and local hospitality. Even the Tempo gas station has seen growth as workers stop for gas and pick up confectionary items.”

Major projects and donations

by Agrium include the donation of $100,000 and land to build a lagoon outside of town. The recreation board of Vanscoy received $50,000 for the Shiverdome project so it could purchase a portable artificial ice plant.

Blucher RM No. 343 Located in the heart of potash country, the RM of Blucher reaps the benefits of two PCS mines: Allen and PotashCorp is proud to support local communities and Saskatchewan culture, like the annual Patience Lake. Both contribute PotashCorp Children’s Festival in Saskatoon. One of the most popular activities is the PotashCorp to the growth and prosperity Fossil Find. An interactive exhibit that mixes fun with a hands-on educational experience, Fossil of the villages of Allen, Clavet Find lets kids hunt for fossils, which they can take home — all while learning about phosphate and Bradwell. The relationship mining and geology. PotashCorp employees, like the one shown, volunteer their time to help between the RM and PCS is provide information and answer questions from kids and parents. Photo courtesy of PotashCorp. symbiotic in nature as they work together to help keep and donated the Jaws of Life to the Humboldt first both mines and the community safe. responders.

“The biggest contributions have been in both Mosaic has also made several donations to the ambulance vehicles and fire trucks — we are the first community, including funds for improvements to the to respond if they need someone on the scene,” said Humboldt Mohawks football field.

Scott Doran, administrator for Blucher for the last six years. “PCS has upgraded our equipment and, when Town of Allan dealing with small municipalities, coming up with the funds for this equipment is expensive. It’s been PCS Allan is one of the oldest potash mines in invaluable as they also help train these volunteer fire Saskatchewan. Since 1968, the mine has brought many fighters and emergency first responders. We don’t economic opportunities to the Town of Allan. One of have facilities like this at our disposal all the time. the most important contributions happened before the You always hope you don’t have to use these services, mine was built. The potash company helped to provide but it’s great that our volunteers have this training.” a local source of drinking water, which had previously Major projects and donations by PCS include been pumped from Saskatoon’s water treatment plant, contributing in access of $100,000 for new equipment more than 50 km away. for emergency services. PCS also provided facilities for “Allan’s biggest growth was when the mine first came training and aid for emergency response teams. in the mid-60s,” said mayor Steve Peters. “When they brought people in for the build and actual production lines, many people from town got jobs in the mine.

City of Humboldt K+S Potash Canada is active in sponsoring youth, education and environment through events such as community powwows There were few commuters and, at that time, there and the Moose Jaw Health Foundation telethon. Above, dancers take part in the First Nations University of Canada powwow in The impact of potash mining isn’t new to the city of were lots of young fellows with young families coming Regina. Photo courtesy of K+S Humboldt. With a population of over 6,000 people, to town.” roughly 30 to 40 per cent of the workers at the PCS Major donations from PCS Allan include: the Lanigan mine live in and around the Humboldt area. installation of drinking water facilities; a $100,000 The construction of the BHP Billiton mine will also donation to engineer the upgrades and demolish the help strengthen Humboldt’s future in Saskatchewan. old change rooms in the Communiplex; the donation of “We’re right in the middle of some pretty major $52,000 for a new Zamboni; and an additional $42,000 potash mining activity,” said Malcolm Eaton, mayor for a geothermal heat exchange in the sports facility. of Humboldt for the last eight years. “They all impact The Town of Allan is currently raising funds with help our community. All of the potash companies have from PCS to build a new Town Fire Hall. been very generous and helpful. The important thing is that they don’t do it all, and they expect City of Moose Jaw the community to be involved in the fundraising for many projects.”

The current construction of the K+S Legacy Mine Recent projects and donations include: outside Moose Jaw will bring a second potash mine to BHP Billiton — an $80,000 contribution to the this growing city. The economic spin-off for the hotels Humboldt and District Hospital Foundation for a new and restaurants in this tourist-driven community is x-ray machine; a $50,000 donation to repurpose an already making an impact. With the Mosaic Potash mine old bank building into an art gallery and another a long-time corporate area resident, Moose Jaw has $50,000 to the senior centre. seen plenty of economic opportunities and community PCS Lanigan – the company matched a $500,000 support. contribution for furniture and equipment for the “We’re very proud of how our city has grown. We new hospital in Humboldt, provided a $75,000 want employees to know that we have all the amenities sponsorship deal to bring the National Junior you’ll find in any city, and hope they choose Moose Jaw Hockey Championship’s Royal Bank Cup to town, to call home,” said Deb Higgins, mayor of Moose Jaw for the last two years. “Our proximity to the Mosaic mine, and their involvement has always been strong.

Whether it’s health, sports or recreation, we’ve seen Mosaic has contributed to numerous community initiatives in Saskatchewan, including a recent donation to Regina’s Salvation support from Mosaic and now K+S.” Army in support of a new student lunch program. Photo courtesy of Mosaic Major donations from Mosaic include the purchase of naming rights to Mosaic Place, a multiplex used for numerous concerts and Environmental • Mining • Hydrogeology • Geotechnical events throughout the year.

• Permitting & Licensing • Project Management • Transportation (Rail, Roads, Air) • Municipal Engineering • Planning & Land Numerous donations have Development • Risk Analysis • Rights of Way & Land Acquisition ISO 9001:2008 Certified also been made to refurbish and replace equipment at Moose Jaw Union Hospital, and to assist with the construction of a new • Dynamometer — load testing up to 5000 HP regional hospital in the city.

• 10’VPI System In its short time in the • Dynamic Balancing to 25,000 lbs.

Tailored Engineering and province, K+S Canada has already been active • Electric Motor Rewinding Environmental Solutions in sponsoring events • DC Motor Repair That Embrace Each throughout Moose Jaw, • Complete Machine Shop Facilities such as the annual powwow Client’s Values • Complete Fabricating Shop and the Hospital Foundation • New Motor & Drive Sales telethon.

Saskatchewan

Innovative mine site

New Facility Now Open

I I

Extraordinary opportunity

mportant to Saskatchewan... mportant to the World...

I get to work with the safest, most advanced technology Jeff, High Voltage Maintenance Supervisor It’s not K+S unless it’s you + us | ks-potashcanada.com

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• PDMA McEmax Predictive Maintenance 817-46th Street East Saskatoon, SK Bus. (306) 931-8456 1-800-631-2933 www.gmrelectric.com

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S aturday, October 25, 2014

Postmedia Saskatchewan

POTASH in our Province

K+S Potash Canada Legacy Project A wholly owned subsidiary of K+S AG, a 125-year-old potash mining corporation based in Germany, K+S Potash Canada GP (KSPC), has selected Bethune, Sask. as a prime location to recover potash by acquiring Potash One — known as the Legacy Project. It is the first newly developed potash mine in Saskatchewan in approximately 40 years, with a C$4.1 billion investment into the project.

“One of the key differences this Legacy project has when compared to some of the other proposed potash mine developments is in part due to the growth strategy of K+S in Germany in conjunction with its long term strategy to sustain its global potash business,” said Sam Farris, vicepresident and general manager of Operations.

Over the next couple of decades, the mine will help replace existing German mines owned by the corporation, while creating opportunities that contribute to the people and economy of Saskatchewan.

KSPC will use solution mining at the Legacy Mine. Solution mining differs from conventional shaft mining, which utilizes a large diameter shaft to access the ore, and a hoist to lift the ore to the surface where it is refined to recover the potash.

“With a solution mine, the whole mining method is different. It’s more like an oil field than a shaft mine.

There are no people underground; we access the ore basically with a directional drilling system used in the oil industry and we have numerous wells that connect the surface to the ore body. We recover the ore by dissolving it. Up front, the ore is all

dissolved with water, and later we use a sodium chloride brine to dissolve the potash selectively from the ore. We refine that brine to produce potash.

It’s a different mining and separation process than a conventional potash mine,” said Farris.

The initial step to solution mining is termed primary mining, which is waterbased mining. K+S Legacy’s goal is to reach two million tonnes per year of production through primary mining by the end of 2017.

The second phase of mining will begin in 2019, referred to as secondary mining with the process of circulating a sodium chloride-rich brine through the caverns beneath the earth to selectively dissolve potassium chloride. This mining process leaves some of the sodium chloride underground in the process of dissolving the potassium chloride (potash).

“It’s still solution mining, called selective mining where we only mine potassium out of the ore instead of the potassium and the sodium chloride.

It’s a nice way to reduce the volume of our sodium chloride sent to tailings by putting some of the salt we mine in the primary mining mode back underground. It’s also very energyefficient to produce potash using a cooling-pond technology. The first of that production will begin in 2019 and ramp up over the next four years to reach our full target of 2.86 million tonnes per year,” said Farris.

“For K+S Legacy, we’re producing potassium chloride and there are three different products we are making from that basic constituent. Two of them are fertilizer products, which are the common use for potash. We produce

Agrium is Feeding the World Responsibly

United Nations World Food Day

Agrium is working hard to ensure that the increasing demand for food is met in a responsible way. In line with this year’s theme, “Family Farming: Feeding the World, Caring for the Earth”, Agrium recognizes the significant role that farmers of all kinds play to provide nutrition, livelihoods and food security all over the world. We know that farmers, like us, know the importance of doing this in a way that both meets our growing needs globally and protects the environment locally.

To help address the community food needs of Vanscoy and it’s surrounding community, Agrium supports breakfast programs and Community Learning Gardens at local schools.

Vanscoy Potash Operations

#16 Agrium Road, Vanscoy, Saskatchewan S0L 3J0 Phone: (306) 668-4343 Fax: (306) 668-2003

agriumwholesale.com

K+S Potash Canada GP is developing Saskatchewan’s first greenfield mine in four decades. The Legacy project, located near Bethune, is expected to produce two million tonnes of potash per year by the end of 2017. Photo courtesy of K+S Potash Canada GP both a standard product and a granular product,” said Farris.

The difference between the standard and granular product is the difference in their size distribution as both contain the same purity of potassium chloride.

Standard means the size is not precisely controlled coming from the production process — it looks much like pink table salt. Typically, standard product is sold to overseas markets where it is either applied by hand or dissolved in water and mixed with other constituents into liquid fertilizers.

The granular fertilizer has a larger, consistent particle size and is easily blended with nitrogen or phosphate granular products to comprehensive fertilizers used primarily in intensive agriculture. The consistency in the particle size is important for successful application with large agricultural equipment, such as air seeders.

Granular fertilizer blends are used extensively for intensive agricultural operations, especially in North America, Brazil and Australia.

“The majority of the Legacy potash products will be shipped overseas targeting the growing markets in China, India and Brazil. We are shipping out of the west coast (Port Moody, B.C.), making it easier to ship to China and India than shipping this product from Germany,” said Farris.

“For product transportation logistics, KSPC signed a long term contract with CP Rail and the plan is to transport the potash from the mine near Bethune to Pacific Coast Terminals with whom we’ve signed a deal to build a potash handling facility for worldwide shipment,” said Maeghan Dubois, K+S communications specialist. “The K+S Magnesium Business Unit in Germany is responsible for marketing the potash produced at Legacy through its existing customer supply chain.”

In total, KSPC now has approximately 200 direct employees, with about 400 employees needed once the mine is in production. Construction is well underway, with 800 workers on the mine site at present with an expectation that number will increase to 2,100 by the end of the construction phase. The majority of the hiring for the mine will begin in 2015 with more than 100 positions available for operators, tradespersons

and supervisors. Legacy will begin production in 2016.

First Nations and Métis involvement is an integral part of K+S Legacy project strategy that began in 2013 and 2014, at which time the corporation entered into contracts with companies that had either First Nations ownership, or where a joint venture between First Nations and other companies could be struck.

“At this stage, most of the work is through contract because you are constructing rather than producing potash. In 2014, we had about 200 Aboriginal people working on the site in some capacity. As we move forward, we will have more direct employment

by KSPC of Aboriginal people at our mine,” said Eric Cline, vicepresident of Corporate Social Activity, responsible for permits, land issues and environmental compliance.

In addition, KSPC entered a partnership with the Village of Bethune for waste water disposal, investing $5.6 million into the village’s waste disposal.

It was the most economical solution for the temporary construction camp, rather than building an independent sewage lagoon and leaving it a stranded asset when the camp leaves.

“The village really didn’t have the resources to expand their lagoon either, so instead of spending the money on trucking our waste water, we partnered with the Village of Bethune to pay for the expansion of its lagoon, which has been done. In return, we have the right to deposit our waste water from a construction camp on an ongoing basis from the mine site to their lagoon as long as we operate without fee.

It’s good for the community and for KSPC, and we also won’t have to build a treatment plant. Bethune is also able to expand their community quite considerably,” said Cline.

KSPC also works with Ducks Unlimited and Nature Conservancy Canada to create new wetlands and grasslands to replace the natural habitats. They are currently in the planning stage with the two organizations.

For more information, visit www.ks-potashcanada.com.

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Postmedia Saskatchewan

S a t u r d ay, O ct o b e r 2 5 , 2 0 1 4

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POTASH in our Province

Saskatchewan mining has quiet future

By Paul Sinkewicz For SP/L-P Specialty Products Gouging potash from deep beneath Saskatchewan’s surface has been the work of nasty, snarling, belching beasts of machines for more than 60 years.

The application of brute force courtesy of workhorse diesel engines did the job just fine, but with each burly r.p.m. came the inevitable byproducts of internal combustion — fumes and diesel particles and the need to bring more sweet, clean air down the shaft and deep into the subterranean tendrils of the mines.

That will all change if Patric Byrns has his way.

The president and CEO of PapaBravo Innovations has been rapidly creating a new way of doing business in the province’s potash mines with a line of electric trucks.

They are clean, quiet and powerful, and they are attracting attention.

“You can only exhaust so much diesel particulate into a confined space without expanding the ventilation system,” said Byrns. “So, in that environment, if you can replace diesel engines with electrics, it expands their production capabilities for what they have for ventilation, and ventilation costs a lot of money.”

Byrns said converting to electric vehicles provides operators with almost a blank cheque for how many vehicles they can put underground.

“There are zero emissions from our vehicles. We don’t use lead-acid batteries, so there’s not even any offgassing. It’s just a perfect application.

The mining environment is an enclosed universe. It’s only got so much air coming into it and you’ve got to keep it clean and you’ve got to use it wisely.”

There is also the elimination of the need for fuel handling, allowing for better fire safety, and there is less heat being generated underground.

The PapaBravo trucks are primarily people movers, but the firm has also built welding trucks, mechanics’ trucks and even fuel trucks to help power diesel equipment.

Byrns’ company is a little over 30 years old, but the name changed to PapaBravo Innovations from SBC Case Industries when its focus shifted to developing electric vehicles.

“I did a conversion in 2008 from gas to electric,” said Byrns. “That was the first thing I’d done. I didn’t even know if it was going to be viable in this climate. At that point in time there were no pure electrics around at all, so I thought there must be a good reason why. I assumed winter was the problem, but it really isn’t. There’s really no good reason not to drive an electric vehicle.”

It was while he was developing his first electric vehicle and trying to find ways to commercialize it that the mining industry came calling.

“It actually made perfect sense and I’d actually thought about that before, but had never pursued it. This mining thing came up and we never looked back. They were hungry for this technology. That’s all we do currently, is just mining trucks of various types.”

The mine that contacted them first was going through an expansion and it was limited because it was starting to get close to the maximum number of engines it could run underground with its ventilation system.

Byrns said the other thing that’s really big is operational costs — ongoing maintenance and repairs.

“You take a traditional diesel truck

that is a staple of underground mining all over the world. Those trucks have hundreds and hundreds of moving mechanical parts. When you turn on an internal combustion engine, it’s trying to tear itself apart and wearing out continuously. It’s basically a series of rolling explosions. We turn hundreds of moving mechanical parts into a couple of dozen moving mechanical parts.”

The motor PapaBravo uses replaces a transfer case, a transmission and the diesel motor itself, and eliminates cooling, exhaust, fuel systems and more.

“There are a lot of parts that are problematic that we get rid of, and we replace them with a brushless AC motor, so the only moving mechanical parts in that are the end bearings.

But it’s still a truck, so there is a differential, and axle and brakes, so those things are the same, but we are fortunate because we are able to go out and pick the best components that are out there.”

Byrns said he knows the mines that have ordered his vehicles are tracking big improvements in service and maintenance costs, and he’s proud of the stories he’s hearing about the popularity of his trucks among the workers.

“One thing that we have seen is that in any of the operations that have our trucks, those are the trucks everybody wants to drive. They fight over who gets to use them, so that tells you a lot.

They are quiet, and some diesel trucks in the mines you have to wear hearing protection. And we have put a lot into our suspension systems. They are the most comfortable four-wheel drive trucks you will ever drive.”

PapaBravo is using cutting edge

technology and putting it together in ways quite different than a lot of people are doing, according to Byrns.

“In terms of electric vehicles, we are really unrivalled. And it’s kind of weird to be sitting in Saskatoon and to think we are leading in that technology, but we are. Now we have our first contract with a mine in Northern Ontario, so we’re just starting to export out of Saskatchewan. Everything we’ve done up until now has been for potash in this province, but our newest truck, the Marmot, has been developed over the last year or so specifically for the global mining market.”

Byrns said the trucks he has been selling really are all potash variants, with an open cab, and are not designed to climb ramps continuously.

They are designed for shaft access mines and are good for long distances with mild inclines.

The Marmot can handle a 25 per cent grade at full payload over a three km vertical rise.

“The Groundhog is actually a fourton truck, so we have everything from basically a quarter-ton up to a fourton truck, but our drive systems are applicable for heavy equipment, so we’re looking at doing drive systems for things like scoops and other big equipment because those are the big offenders underground for diesel emissions.

“That motor that we put in the Marmot has enough torque and horsepower to replace an eightcylinder diesel engine. And that motor is only three inches thick and about 14 inches around and weighs about 50 pounds,” said Byrns.

“There are no real technical limitations on what we can do now,” he said.

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S P O N S OR E D C O N T E N T

S aturday, October 25, 2014

Postmedia Saskatchewan

POTASH in our Province

Mosaic is proud to call Saskatchewan home, with mines in Belle Plaine, Colonsay and Esterhazy.

The Mosaic Company — celebrating 10 years of helping the world grow the food it needs

Mosaic is uniquely positioned as a young organization with a rich legacy formed from the merger of Cargill Inc. and IMC Global Inc., companies with strong histories of innovation and community commitment. And, in 10 years, Mosaic has been able to blend the best of each of these cultures to become an industry leader — here at home and around the globe.

As the world’s leading producer of potash and phosphate — two minerals necessary for plant growth — Mosaic mines and manufacturers these natural resources to produce high-quality fertilizers. These same crop nutrients give farmers a fighting chance to meet the growing demand for food as the world’s population rises to an anticipated nine billion by 2050.

Over the past decade, Mosaic has increased production capacity with potash expansion projects in Saskatchewan. The company has committed to sustainability and to supporting nearby communities as a responsible neighbour. It has created value for customers and shareholders — all while maintaining a relentless focus on safety in its workplaces.

Mosaic operations Mosaic is proud to call Saskatchewan home, with mines in Belle Plaine, Colonsay and Esterhazy, and a head office in downtown Regina. Mosaic’s place in the provincial landscape spans over 50 years and it is driven to help grow Saskatchewan for the long term through continued investment in its businesses, communities and people.

A great place to work and grow The company employs nearly 2,300 people in Canada and supports thousands of additional positions in related fields. From miners to skilled tradespeople, engineers to professionals, they are part of a global team that is richly diverse in skills, experiences and backgrounds.

Together, their hard work and dedication helps find new ways to advance the business and ensure that Mosaic continues to be a world-class organization.

Growing our future As the world’s crop nutrient needs grow, Mosaic is growing to meet them. In 2008, Mosaic initiated plans for capacity expansion at each of its Saskatchewan mine sites. Current and completed projects in the company’s multi-billion dollar potash expansion program — which looks to tap a century’s worth of reserves — have been on budget and on schedule

despite the challenges of a competitive labour market.

There is no greater representation of Mosaic’s growth and investment in the future than its K3 project. The 374-foot production headframe — the tallest structure between Calgary and Winnipeg — reached its height in 2013.

Work on the site’s two mineshafts is moving forward, along with supporting infrastructure. Scheduled to begin production in 2017, the development will provide capacity growth for the Esterhazy operations and Mosaic.

A culture of safety Being an industry leader is about more than just producing potash tonnes. Whether an employee works on surface, underground, or in an office setting, safety is a part of Mosaic’s very DNA and how the company chooses to do business. This mindset shapes its values and sets clear expectations throughout the company.

In 2013, Mosaic achieved record safety performance, including a six per cent improvement in its key safety measures on the heels of two consecutive record periods.

This level of excellence extends to the company’s emergency response teams. Mosaic’s teams continue to excel in emergency response and mine rescue competitions — both locally and nationally — which speaks to the level of training they receive and the experience they develop. Recently, its Colonsay facility was the overall winner at the 24th annual Industrial Fire and Rescue Competition. Mosaic’s Esterhazy teams also did extremely well, capturing first place in a number of events.

Results like these reaffirm the effectiveness and quality of Mosaic’s Emergency Response Program, and the ongoing commitment and contributions of team members.

potash production process. In 2013, this partnership allowed Mosaic to save approximately 34,000 Gigajoule in indirect energy consumption with associated carbon savings.

Mosaic’s work in Saskatchewan also includes: • Recycling or reusing 87 per cent of the fresh water used in its potash operations • Supporting the air zone management concept, by belonging to the Southeast Airshed Association, Western Yellowhead Air Management Zone and the Great Plains Air Zone • Implementing energy reduction studies and programs at its sites through its continuous improvement departments • Protecting Saskatchewan’s grasslands through work with the Nature Conservancy of Canada.

Committed to being a good neighbour

Mosaic understands that the sustainability of its business and its communities are indelibly linked. The company is particularly proud of its commitment to giving back here at home as it strives to be a thoughtful and engaged neighbour.

Over the past 10 years, Mosaic has helped build strong and vibrant communities where its people live, work and raise their families by supporting initiatives such as: • Mosaic Heart Centre at Regina General Hospital • Children’s Hospital Foundation of Saskatchewan • STARS Air Ambulance • Mosaic Place in Moose Jaw • Food security agencies like Hunger in Moose Jaw, Regina Education and Action on Child Hunger (REACH) and local food banks.

As an important part of the Regina Revitalization Initiative, Mosaic was extremely proud to enter into a Mosaic’s success is rooted in renewed 20-year Mosaic Stadium sustainability naming rights agreement with the Mosaic is also dedicated to making Saskatchewan Roughriders. The smart and responsible choices about its partnership, which will begin in 2017, stewardship of the environment, and is will usher in a new and exciting era of the only mining company to have been growth for the city and province. Best recognized by Corporate Responsibility of all, Mosaic is doing its part to bring and Ethisphere. new opportunities to people and the A prime example of the company’s commitment to operating responsibly is community.

Other recent highlights include: the cogeneration projects taking place • Presenting the RCMP Heritage at its Belle Plaine facility.

Centre with a gift of $1 million to Through an agreement with an enhance programming and the visitor industrial partner in Saskatchewan, experience the facility sends water to be used • Donating $1 million to Habitat for in a cooling process at a nearby Humanity to further the provincial plant. The heated water returns to organization’s goals and objectives Belle Plaine to be used as part of the

The 374-foot production headframe at the Mosaic K3 site near Esterhazy stands as the tallest structure between Calgary and Winnipeg.

• Contributing $200,000 to Regina’s Salvation Army to support a new student lunch program • Addressing food security by providing $155,000 to help establish the Saskatoon Food Council.

An eye toward the future Mosaic and its workforce have worked hard to forge the company’s identity and to deliver on its commitment to its employees, customers and stakeholders.

From the very beginning, Mosaic was driven to build a world-class organization. The company now stands on a solid foundation and has the extraordinary momentum to achieve even more.

Mosaic has accomplished much more than it thought possible over the past 10 years. This decade of success is a credit to exceptional teamwork and a steadfast commitment to operating safely and responsibly. As the company looks ahead, it is motivated by its noble mission of helping the world grow the food it needs.

Mosaic is ready for what’s next. Here’s to a second decade full of promise and prosperity!

S P O N S OR E D C O N T E N T

Postmedia Saskatchewan

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Strength From Within

By Jillian Mitchell

It can easily be stated that the strength and success of a company rests solely on its foundations and principles. Accordingly, Fortis Mining, Engineering & Manufacturing a subsidiary to the Northern Strands Group of Companies since 2006, has more than lived up to its Latin derivative, fortis, which aptly translates to “strong,” in the ever-changing landscape of the mining and construction sectors.

The humble beginnings of the internationally recognized company are rooted in the hard work and dedication of its employees, the heart of the operation. As a result of those enduring values, the company now boasts five major divisions: Mining, Engineering, Custom Machining & Fabrication, Destructive/Non-Destructive Testing & Recertification, as well as a Heavy Duty Mechanics shop.

“We’re basically growing with customers’ requests. We’ve expanded from shaft work to doing construction work underground. It’s evolving to be more complete,” says Robert Stubbins, general manager of Fortis Mining, Engineering & Manufacturing.

In addition, Fortis has successfully forged relationships with a number of customers including Potash Corporation, Agrium, Mosaic, Cameco, Nyrstar, Rio Tinto, and Agnico Eagle, along with several other mining service companies.

“We would like the Fortis name to mean ‘one-stop shop,’” adds Garry Clarke, vice-president of Fortis’s parent company, Northern Strands. “If you have a project, give it to Fortis and Fortis will take care of it from beginning to end.”

Clarke adds, “We’re not going anywhere, we’re strong here. We’re proud of every job we do and try to exceed our customers’ expectations.”

Indeed, the company has become a specialist within the mining and construction industries by integrating engineering and manufacturing technologies into one effective and efficient process.

“There’s a certain number of unknowns when you start taking things apart in the middle of the production stream,” says Clarke. “We have a fabrication shop, we have engineers, a machine shop, and we’re also tied to Northern Strands, so we have all the rigging and fall protection products. Basically whatever we need to keep the project going and keep it on track we have access to internally.”

The continuing commitment to its certification as an ISO 9001, 14001 and OHSAS 18001 organization remains exceedingly high. As a company that places high value on progress and excellence, Fortis looks to its future as a leader in work safe environments and

Service Guarantees

By Jillian Mitchell

The old adage “what you take care of will take care of you” is not lost on the Certified Mining & Construction Sales & Rentals (CMC) team of Saskatoon. The Saskatchewan-based company serves a geographical area where for many years a deal was signed with a handshake. For those who established life on the great Canadian plains, honesty, cooperation and community were the values above all others that made the region grow and prosper.

The region boasts an abundance of industry, including potash and uranium mines, in addition to serving as the gateway to Saskatchewan and Manitoba’s northern mining industry. For CMC, Saskatoon is the perfect place to call home, and in turn, the company proudly serves its community in earnest.

“Saskatoon is a gem. In order for CMC to be successful, it needs to be in a place like Saskatoon that has a lot of support,” says Garry Clarke, vice-president of Northern Strands, CMC parent company. “All the industrial businesses get along and feed off of each other. If CMC needs something, you can pretty much find it in Saskatoon.”

Thankfully for the mining and construction industry of Saskatchewan, companies that possess values akin to CMC exist. In an industry where standards must be strictly adhered to and work safety is of the utmost importance, clients need to rest assured that their equipment is dependable and backed by a service guarantee.

“The first focus we have today is that we make sure that we do it right. Every piece of equipment that leaves is right and is in good condition and can be depended on,” says Clarke. “That’s getting us our next job and making us a lot stronger. We expect to see 20 per cent growth this year just because we’re looking after whatever we have today.”

The company has positioned itself to be the very definition of peace of mind, offering 24/7 emergency support including underground-ready specialized equipment and a fully licensed service department with mechanics that are licensed to work on all makes and models of heavy equipment and machinery.

In addition CMC’s recertification services strive to exceed client expectations with a repair service that includes everything from tuggers and chain hoists to Kubotas and rough terrain vehicles, as well as providing the necessary paperwork to return the equipment back to the jobsite immediately.

“A term that we use at the mines a lot is mine-ready. If it comes from Certified, it’ll have all the tags and testing,” continues Clarke. “We will not only have everything ready, we will even come up with a lift plan so you can take it underground. In fact, we’ll even take it underground, if you want.”

A little elbow grease and some genuine integrity have proved the successful formula for CMC, and for Clarke the success of the company depends upon one key factor—its people.

“We’re seriously trying to get the right people,” he says. “This whole show would not fly if we didn’t have the right people.”

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