Manitoba potash mine begins production

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This article was published 10/06/2023 (1022 days ago), so information in it may no longer be current.

HARROWBY — There was much fanfare as production started Friday at Manitoba’s first potash mine, which is expected to kick-start the economy in the western part of the province.

“The global demand for critical minerals is at an all-time high,” said Premier Heather Stefanson at the announcement in this town just off the Yellowhead Highway, 15 kilometres west of Russell.

The Potash and Agri Development Corp. of Manitoba has invested $12 million in the project, which is expected to mine 250,000 tonnes of potash a year.

“After years of researching the potential of this resource, we are pleased to get to this historic point of producing the very first potash in Manitoba,” said Daymon Guillas, president of the firm. “It will be a catalyst for more economic development in our region and the entire province.”

Officials, including Premier Heather Stefanson, were taken on a tour that highlighted the unique way it mines potash, which involves injecting a brine solution into the ground and extracting the liquified substance, where it is chilled and turned into crystal. Potash is used as a fertilizer and is the key component in several industrial compounds. Compared to the traditional room-and-pillar mining method, Guillas said this low-disturbance extraction process is much cheaper and has a much smaller environmental impact, making this facility one of the lowest-emitting potash mines in the world.

“Nobody had to help us go green. We are green,” Guillas told the Brandon Sun.

He was brimming with excitement during Friday’s tour since he’s been pushing to establish a potash extraction project in Manitoba since 2007.

While he initially considered relying on foreign investors to help get the ball rolling, Guillas decided to pursue a different route after meeting with Beechy Potash CEO Harvey Haugen, who suggested local ownership was the way to go.

“So it was really Harvey Haugen that became the inspiration for this project,” Guillas said.

He credited Stefanson for jumping at the chance to collaborate with the company after she became Manitoba premier in late 2021.

The Manitoba government granted PADCOM permission to start extraction and production last June. Its mine closure plan was formally approved in March.

The premier said mining has always been an essential contributor to Manitoba’s economic prosperity. “Last year, the mining industry invested over $170 million in exploration activities in Manitoba,” Stefanson said. “This has resulted in hundreds of jobs and generated economic opportunities for Manitobans all across this great province of ours.”

The premier noted the mine will be a carbon-neutral facility that uses Manitoba Hydro energy.

Guillas said the mine is at the pilot stage of its potash production, meaning three tonnes will be extracted daily.

Once its heating and cooling systems are fully operational in two months, five to 10 tonnes of potash will be extracted every hour.

While the production rate won’t rival potash mines in Saskatchewan, Guillas is confident PADCOM will make a tidy profit, especially if they can ship the product to international customers through the Port of Churchill.

“We’ll try to find markets that (Saskatchewan operations) don’t have so we can create our own market and create new demand,” he said.

One of PADCOM’s main objectives is to ensure local communities directly benefit. Gambler First Nation is a 20 per cent equity partner; the firm is committed to sharing 11 per cent of its net profit with other First Nations.

“I’ve heard quite a bit about how we’re a ‘have-not’ province, but I think that’s going to change pretty quick,” said Gambler Chief David LeDoux

— Brandon Sun