The economic opportunity beneath our feet

Opinion

Hey there, time traveller!
This article was published 13/05/2024 (482 days ago), so information in it may no longer be current.

Beneath Manitobans’ feet lies a treasure trove, ripe and ready for exploration.

Like Windsor is to salt and Saskatchewan to potash, the emergence of green technologies has placed a huge new economic opportunity right beneath the feet of Manitobans.

Since its beginning in the late 1800s, Winnipeg has benefited from being a centre of trade for western Canada, hoping in those early heady days to become “the Chicago of the North.”

Natural resources were always part of the mix. But unlike agriculture, Tyndall Stone and aggregate, mineral development was generally something that happened far, far away in Manitoba’s north.

Now, all that could change, with green technologies now seeking the highest purity silica sand and southern Manitoba hosting massive deposits with silica values exceeding 99.5 per cent.

When stacked up against Saskatchewan and its potash, Manitoba silica is the clear winner, with our silica sands fetching more than double the price on the open market ($640 vs $300 per tonne).

This resource occurs in two distinct sand units within the 470 million year old Ordovician Winnipeg Formation, which is widespread throughout what is known as the Williston Basin of western Canada.

The Manitoba Critical Mineral Brochure indicates the silica deposit spreads west from the Falcon Lake-Hollow Water edge on the east to near Brandon in the west and south to almost the U.S. border.

Combined, these units span an area greater than 1.6 million hectares — almost four times the 485,000 hectares of potash located in Saskatchewan.

This is the kind of discovery that can change everything for an economy, as it has in Saskatchewan, where BHP recently announced $6.4 billion in spending for phase two of the Jansen potash mine, one of 11 potash mines in the province.

Development on this scale across Manitoba’s silica sand resource area would mean hundreds of millions, if not billions, of dollars in new tax revenues for governments at all levels.

Manitoba’s southern municipalities could balance their budgets and pay back their debts. Manitoba could finally afford a modern health-care system. And decent roads.

And Indigenous communities would have an opportunity to get in on the ground floor for defining how this newly profitable resource should be developed.

A prime example of this type of collaboration is the Canadian Premium Sand project near Hollow Water First Nation and Peguis First Nation environmental monitors.

Backed by Premier Wab Kinew, this initiative promises environmental and economic benefits for the First Nation, like substantial job creation, environmental oversight, and revenue sharing.

Indigenous communities are pivotal in sustainably unlocking our mineral potential, ensuring that the wealth of resource development is shared equitably.

The economic spinoffs would also be felt across Manitoba.

It could mean thousands of good paying primary industry jobs for young people.

It could also spawn whole new manufacturing and research and development industries by companies wanting to locate next to the resource.

And in the process, it would put an end to our long-standing western Canadian resource envy.

The first step in accomplishing this is for Manitobans to change our relationship with resources. Traditionally, our diverse economy has given us the luxury of saying “No” to projects like this.

But by pivoting our perspective from ‘NIMBY’ (not in my backyard) to ‘HOME’ (harnessing our mineral excellence), we lay the groundwork for economic growth and prosperity for our communities.

While novel for sand extraction, wells are not new resource extraction technology.

Wells are sealed from surface and are highly regulated.

They have long been designed to prevent mixing materials from different rock layers in the earth.

There are over 12,000 holes in similar rock formations in the Virden/Waskada area in southwestern Manitoba.

ERCO Worldwide is operating a similar technology near Virden to extract salt brine. And PadCom near Russell is using similar technology to extract potash.

Many of these wells cross saline and freshwater aquifers to reach their intended target, without failure. The province is not aware of any groundwater contamination from these wells.

Manitoba’s environmental licensing legislation is among the best in the world. It is a robust, science-based, environment licensing process that provides significant opportunities for public engagement.

Where there are environmental questions, tests can be done to ensure no adverse effects are caused by a project.

Our science-based licensing process not only facilitates significant public engagement but also ensures that environmental safeguards are in place to prevent any potential adverse effects from mineral projects.

Developing projects in Manitoba using our policy framework ensures these projects will be developed safely.

It also allows us to continue to develop environmental best practices that can be provided to others around the world where environmental practices are not always so robust.

These practices set a standard that can be provided to other regions where oversight may not be as stringent.

This dual focus positions Manitoba as the keystone in Canada’s transition to a green economy, while engineering an economic win-win.

As we unlock the door to a sustainable future, we also open the treasure chest of prosperity.

Opportunity is knocking. Will we open the door?

Hon. MaryAnn Mihychuk, MSc Geo, is president of the Manitoba Prospectors and Developers Association.