Mining in SaSkatchewan Regina LeadeR-Post
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One expert notes the Canadian mining industry will need to hire 80,000 workers in the next decade, mostly to replace retirees.
Get t y ImaGes p hot o
Tech Tomorrow Educators and stakeholders focus on analytics, robotics and machine learning as the mining industry moves increasingly away from on-the-ground digging, as Joel Schlesinger explains. The future isn’t just bright for mining — it’s increasingly high-tech. What’s more, workers with the right skills will be in demand in the coming years as the province’s mining sector transforms itself more and more into a technology-based industry embracing big data analytics, robotics, machine learning and autonomous vehicles. “We have some very large companies in the mining sector, and growing use of technology is part of the province’s overall economic growth plan,” says Dr. Larry Rosia, president and chief executive officer of Saskatchewan Polytechnic. Saskatchewan is a global leader in extracting uranium, potash and other mineral commodities, with multinational firms such as Mosaic, Cameco and Nutrien operating major mines in the province. “And every one of these will ultimately be a technology company, so as these mining firms become tech-based, the need for an educated and skilled workforce will become only more critical,” Rosia says. That’s one of the key reasons the polytechnic has an advisory com-
mittee and works with stakeholders from these firms to determine future training needs. “There’s no question there is a transformation taking place,” says Jamie Hilts, dean of the School of Mining at Saskatchewan Polytechnic. “Mining is not as manual-labour intensive as it once was, with robotics and automation more and more the standard practice.” These emerging technologies are where the emerging jobs in mining are. Even new training for millwrights involves working on autonomous vehicles increasingly in use in mines, Hilts adds. Robotics and other automation will inevitably mean fewer boots on site. Still, demand for workers in the industry — looking beyond the current challenges of the COVID-19 pandemic — will be high, says Ryan Montpellier, executive director of the Mining Industry Human Resources Council (MiHR). “What’s happening today casts a long shadow. This is a little bit of uncharted territory with COVID-19.” For sure, the pandemic has resulted in disruption, with some
mine shutdowns and layoffs. But what doesn’t change is the need for these resources today and in the future, and the coming demographic challenges faced by the industry, he says. “About 40 per cent of the industry is 45 years old and up, and a number of those workers are much closer to retirement age,” Montpellier says. “Those are folks that will need to be replaced.” He further notes the Canadian industry will need to hire about 80,000 workers in the next 10 years, with the bulk of those jobs replacing retiring workers. The industry will grow, too, but much of that growth will be muted by new technologies reducing the more traditional on-the-ground workforce at mines. “So, for example, what used to take 20 people hauling ore in trucks can be done with one person in one truck, and now we’re even talking about automating that job,” Montpellier says. Indeed, autonomous vehicles could soon be the norm, and those are the kinds of technologies where the job growth will be. “The need for STEM-related
(science, technology, engineering and mathematics) occupations has grown significantly, certainly more so than we are seeing among the more vulnerable occupations — those hands-on jobs in the past,” Montpellier says. That’s why post-secondary institutions such as Saskatchewan Polytechnic are part of initiatives like the Digital Integration Centre of Excellence (DICE), working with various industry partners. And mining organizations are chief among them, says Hilts. “We work with a lot of mining companies to look at ways for operations above and below ground to have the necessary technical expertise to deliver the services to work with emerging technologies.” But the jobs and training go beyond the technical aspects of mining. “Jobs also include commercial pilots who fly workers into camps, cooking and professional food services, occupational safety and nurses,” says Hilts. He adds that the sector also employs plenty of office occupations in finance, administration and legal. “The mining sector is very large and diverse.” As well, training for future workers, and even for existing employees seeking to upskill, is experiencing strong demand even amid the pandemic, Hilts says.
InsIde r a r e e a rt h elements
The drive to forge North American supply chain B2 P o ta s h
Producers explore new methods to compete B3 P o s t - c ov I d
Province has tools to succeed despite challenges B4 “Our mining engineering technology program (which launches Aug. 31), as early as May, was 95 per cent full, and we’re very confident our programs related to the industry will continue to be sought out.” Near-term challenges aside, a light shines brightly at the end of the tunnel for individuals seeking good-paying, engaging careers, Rosia says. “Someone wanting a great career in Saskatchewan should certainly look to the mining sector.”
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Taking on China Appia seeks to take a slice of Asian giant’s 80-per-cent global share in rare earth elements to develop North American supply chain, as Paul Sinkewicz explains.
If things go as hoped, the 2020 exploration season will unearth some good news for Appia Energy Corp. The Toronto-based firm is looking for rare earth elements (REE) at Alces Lake, 36 kilometres northeast of Uranium City, in Saskatchewan’s far north. James Sykes, vice-president of exploration and development with Appia, says the project shows promise. He’s hoping it may eventually change the rare earth element supply landscape for North America. “It’s a very exciting project that has everything going for it. It has the right mineralogy, it has very high grades and is enriched with critical rare earth elements (neodymium, praseodymium, dysprosium, terbium),” says Sykes. “It’s just a matter of being one or two good seasons away from actually proving up what we have up at the site.” Rare earth elements are a suite of 17 elements that, like gold, copper or iron, reside on the periodic table. They are not actually rare, but finding ore deposits and formations that can be mined economically is the challenge. The elements, with names such as europium and gadolinium, have different qualities that are useful in manufacturing things such as magnets and electronics. Neodymium, for example, has very good magnetic qualities. Rare earth elements can be used as compounds or metals, and are commonly used in things such as lighting, touch screens, cellphones and consumer application magnets. China foresaw the uses of rare earth elements in the 1980s and developed their industry. Today, the country handles more than 80 per cent of the worldwide supply. In North America, only the Mountain Pass mine in California produces any. The United States is very interested in developing the rare earth element industry to ease its reliance on China as the world’s primary supplier. Sykes says Canada, and Saskatchewan, could really benefit from developing the industry. “What we have is a project that has the capabilities to become North America’s second rare earth operation after Mountain Pass. It’s got the potential to be quite large. It’s got high grades — the average is about 16 per cent total rare earth oxide, so that’s considered extremely high.” Sykes notes that Saskatchewan’s mining industry is experienced at dealing with the environmental circumstances that come with mining radioactive materials, like those associated with rare earth elements. The province also boasts an incredible resource in the Saskatchewan Research Council’s expertise in the field. Jack Zhang, business unit manager of mineral processing with the Research Council, says over the past decade they have been working closely with the rare earth element industry to develop new and environmentally sustainable processing technologies. “During this time, we developed the expertise and capabilities to help the rare earth element industry to both reduce costs and maximize values,” he says. “Through years of experience, SRC has become the leading technology provider of REE testing and analysis.” Since the Research Council is industry focused, its applied research and development work is usually done together with private exploration and development firms. Companies from around the
world leverage its help to develop new and environmentally sustainable technologies. Typically, the Research Council will work with a private firm to first develop a concept. If the concept fits the firm’s development strategy, the two groups will develop a scope of work and a road map to achieve the collectively determined targets. For Sykes, the team at the Research Council will be critical in first proving the Alces Lake project has legs, and then getting Appia set up for small-scale production. “We’re hoping to get them started on some metallurgical work, because they’ve got the equipment and the processing facilities and the know-how. Once we prove that we can do it at a small scale, and once we prove up a sizable resource, SRC can help us build a scalable facility at the project site,” says Sykes. Zhang says the challenge for industry is that there is no complete rare earth elements supply chain in North America. That means there are big gaps between production and final consumption. “Right now, China dominates
It’s a very exciting project that has everything going for it. ... It’s just a matter of being one or two good seasons away from actually proving up what we have up at the site.
not only the production, but also the market,” Zhang says. “To build the REE supply chain in North America, collective efforts are required for the whole industry, from exploration, mining, processing, separation to metal production and alloy production.” The Saskatchewan Research Council is aiming to become the rare earth element technology hub, to help the industry build supply. There is potential for rare earth element processing in the province to take advantage of the existing uranium industry, Zhang adds. “We are also working closely with the uranium industry in Saskatchewan to develop new rare earth extraction technologies from the uranium processing waste in order to best utilize the resources and add value for this industry,” he says. “A significant amount of heavy rare earth elements are typically associated with uranium ore bodies.” The Research Council is trying to make the technology more environmentally sustainable and more selective, with less waste production, Zhang adds. “The rare earth extraction technology work with the uranium industry also has the potential to make the industry more viable in the province,” he says. “SRC intends to accelerate the development of the critical supply chain in Saskatchewan and Canada by building a commercial pilot scale REE processing facility in Saskatoon. Once completed, this will provide an important route to market for Saskatchewan and wider Canadian producers.” The next steps for now will be taking place near that northern Saskatchewan lake, as Appia continues exploration efforts at Alces Lake this summer.
“We still need to prove up our own tonnage,” says Sykes. “We don’t have a resource estimate out yet. We need to work on that for the summer, but I’m hoping that what we have up there, what we’ve seen so far, will certainly lead to far more. We’ve got a huge amount of potential on that ground.”
The Saskatchewan Research Council, based in Saskatoon, is aiming to become a hub for the rare earth elements industry that is slowly being developed in North America. SaSkat chewan R eSeaRch council
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Potash producers look to the future Explore new mines, new methods and a new outlook Every industry has
Pau l S i n k ew i c z
Saskatchewan is home to half of the world’s reserves of potash — an important element in the fertilizer used to grow the crops needed to feed the planet’s nearly eight billion people. Last year, the province mined and exported more than 20 million tonnes, accounting for more than 30 per cent of the world’s annual production, according to figures from the Saskatchewan Mining Association. Aside from fertilizer, potash is used to manufacture potassium-bearing chemicals in things such as detergents and pharmaceuticals. For Saskatchewan, it’s a $5.5-billion industry, contributing more than 5,000 jobs and $1.5 billion in wages and taxes to the economy. Two methods are used to mine potash: conventional underground mining and solution mining. Most of the mineral is extracted using conventional underground mining at depths of about one kilometre. The business end of a conventional potash mine tunnel sees large boring machines grinding away at the face of the deposit, with conveyor belts taking the raw ore back through many kilometres of tunnels to meet up with the production hoist that brings it to the surface. Solution mining, which is done at depths greater than 1.6 km, involves pumping hot water underground into the ore body under high pressure, where it dissolves the potassium chloride and sodium chloride. The resulting brine solution is then pumped to the surface for processing. Mosaic Company has experience with both types of production. Its Belle Plaine solution mine has been in operation west of Regi-
its evolution period and its revolution period, and I think it’s time for the revolution period in the potash industry. Mike Ferguson, president and Ceo, gensource Potash Corp.
Gensource Potash Corp president and chief executive Mike Ferguson sees selective solution mining, which he says has a smaller footprint than traditional methods, “as the way potash will be produced in the future.”
na since 1964. Its K3 mine, near Esterhazy, is a traditional underground mine, though it will be among the most technologically sophisticated potash mines in the world when completed. “Mosaic’s Belle Plaine site was the first (and still the world’s largest) solution mine,” says Sarah Fedorchuk, vice-president of public affairs and government relations, North America, for Mosaic Company. “Each type of mining has its own associated costs. Traditional shaft mining requires a great deal of infrastructure and assets, underground maintenance and capital for the life of the mine. In solution mining, there are other costs that come from drilling, pumping and the evaporation process.” Fedorchuk says the new K3 mine in Esterhazy — Saskatchewan’s first new underground mine in
more than half a century — will lead the industry in innovation and efficiency. “Our new mine in Esterhazy is poised to be one of the largest, lowest-cost potash facilities in the world. “For Saskatchewan’s potash industry to thrive in the future, we have to think about overall competitiveness,” she says. “While supply and demand predict the short to medium outlook, long-term we need to be taking action to ensure we stay ahead of our Russian, Belarusian and other global rivals.” Mike Ferguson has a different vision for producing potash in Saskatchewan. The president and chief executive officer of Gensource Potash Corporation says the company is putting the final touches on work that will move the province’s newest solution mine to the construc-
tion phase later this summer. When fully operational, the Tugaske Project, located 170 kilometres south of Saskatoon, will produce 250,000 metric tonnes of potash each year. It’s not a large number, but Ferguson says everything about the project signals a seismic shift in thinking about potash production. “It’s funny. Every industry has its evolution period and its revolution period, and I think it’s time for the revolution period in the potash industry,” says Ferguson. Gensource has developed a solution mining method that drastically reduces the footprint required for a production site, while reducing operating costs, energy consumption and impact on the local environment. “What we’re doing is called selective solution mining and that’s a real change from the other two
mining methods on a number of fronts. First, because it uses less energy per tonne, it uses much less fresh water per tonne, it’s cheaper to implement and, environmentally, it leaves no salt tailings on the surface and requires no brine ponds,” he says. “So the result is our operation won’t even look like a potash mine. Somebody driving by won’t even be able to tell that it’s a potash mine, it’ll look like a little agricultural processing facility or something like that. It’s a wildly different animal in almost every respect.” Ferguson’s vision for the future is to have many of these smaller mines dotted around the province, mining potash more unobtrusively. “We see this as the way potash will be produced in the future.” Solution mining appears to be on the rise in Saskatchewan. When it opened in 2017, the K+S Bethune solution mine was the first greenfield project in the province in 40 years. Later this year, Western Potash Corp. is getting ready to begin harvesting potash from its Milestone selective solution mining project, 30 km southeast of Regina.
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yet another blow
While there are definite challenges, Saskatchewan has a lot going for it post-pandemic Joel SchleSinger
The COVID-19 pandemic has infected many sectors of the global economy, and mining has been no exception. Despite resource extraction being an essential service that provides the critical materials for a variety of products — including food production — a number of mines shut down in the early days of the pandemic due to the health risks and economic shock waves associated with the highly contagious and potentially deadly new coronavirus. Certainly, Saskatchewan’s industry has felt the impact. And the timing could not have been worse for the key sector of the provincial economy that directly employs more than 12,000 people. “The industry was already struggling and then this pandemic comes along, which surely is a kick in the gut because there is just less demand overall,” says Dr. Lee Swanson, associate professor at Edwards School of Business at the University of Saskatchewan. Indeed, Saskatchewan’s north — rich in uranium and increasingly recognized for its potential for gold and diamonds — has been among the regions most negatively affected by a cool market and pandemic uncertainties. Ken Coates, Canada Research Chair in Regional Innovation, says the Saskatchewan mining industry’s near-term future remains uncertain not only due to the pandemic, but also pre-existing challenges that affect potash and uranium. “We really don’t know what the world will look like by 2021 and beyond,” says Coates, a professor with the Johnson-Shoyama Graduate School of Public Policy at the University of Saskatchewan. Even before the pandemic, it had been a tough year for the industry.
The industry was already struggling and then this pandemic comes along, which surely is a kick in the gut because there is just less demand overall.
More than 500 people comprised the workforce at Cameco’s Cigar Lake Mine, 900 kilometres north of Saskatoon, before it was put in maintenance mode. Now, it’s down to about 75 people, according to Dr. Lee Swanson, associate professor at Edwards School of Business at the University of Saskatchewan G o r d Waldner /files
For example, “going into January and February, the uranium industry was going into a slowdown,” he says. Challenges aside, the sector remains “a huge part of the economy,” Swanson says. “It creates jobs and not just in the mining sector, but in the services businesses that support it.” Government data from 2017 show that for every direct job in mining, two indirect jobs are created. Even two years ago, the industry faced demand headwinds. Prices for uranium and potash were generally far below the historic highs hit in the mid-2000s and early
2010s. As such, major potash producers announced cutbacks prior to the pandemic. Among them was Saskatoon-based Nutrien, the world’s largest producer of potash, which idled some of its projects last fall. The pandemic, in some cases, created a compounding effect. Cameco — the largest publicly traded uranium company in the world, and headquartered in Saskatoon — announced March 23 its Cigar Lake operation would be placed in safe care and maintenance mode. That followed the 2018 shutdown of its McArthur River/Key Lake operation due to prolonged market weakness.
Swanson says the recent closures are particularly impactful on northern communities. “The Cigar Lake operation workforce, including contractors, consisted of more than 500 people, and that’s down to something like 75 people now,” he says about the major mine 900 kilometres north of Saskatoon. He notes that nearby Indigenous communities are likely feeling the deepest economic impact, given that one in five mine workers in Saskatchewan are Indigenous. Additionally, SSR Mining ’s Seabee gold mine — also in the northern part of the province — was put into temporary care and
Ensuring that our office and Jansen site continues to be a safe place to work during the COVID-19 pandemic has been our top priority. We are only successful because we are #InThisTogether. Find out more about our response to the COVID-19 pandemic at bhp.com.
Giles Hellyer, President Potash, at the Jansen site.
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Despite the high demand for gold, SSR Mining’s Seabee Gold Operation in northern Saskatchewan went into maintenance mode in April.
maintenance mode in early April due to the challenges arising from the pandemic, even though global demand for the precious metal was strong. But the challenges of fighting a pandemic have in some cases outweighed the economic case for mining, especially in remote parts of the province, Swanson says. “You’re talking about workers travelling to these places in airplanes, in close proximity to each
other, and then sometimes working in close quarters.” Consequently, many northern Indigenous communities are reluctant to see an influx of workers who could bring disease, Coates says. “So the question becomes, what does that mean for the exploration and development season?” Coates notes this segment of the industry is a key economic generator for many communities. Cur-
rent conditions do not bode well for exploration, and that could have a knock-on effect for the industry’s future growth. “My concern is we’re looking at a two- to three-year slowdown before things race back into play.” At the same time, the industry is going through a digital transformation that will undoubtedly make Saskatchewan operations more competitive, Swanson adds. “I would suspect companies are
price-wise, so these innovation efforts are key to remaining competitive today and in the future.” In the long term, Saskatchewan has all the ingredients to continue as a mining powerhouse, Coates adds. It has the resources, know-how, people and reputation as one of the most “mining-friendly jurisdictions in Canada,” he says. “So there’s a lot of potential in the long run.”
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looking at training and moving forward with technological advances when they can,” he says about innovations such as robotics, autonomous vehicles, big data analytics and artificial intelligence. More and more jobs in mining involve less of the traditional onsite work as they become technologically focused, requiring skills such as coding, Swanson says. “As always in Saskatchewan, we must be sure we can compete
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