Province’s first potash mine up and running

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This article was published 10/06/2023 (822 days ago), so information in it may no longer be current.

HARROWBY — Manitoba is now in the potash mining business, with preliminary production of this precious resource officially taking place in rural Westman as of Friday.

To celebrate the grand opening of the province’s very first potash mine, the Potash and Agri Development Corporation of Manitoba (PADCOM) invited members of the public and government officials to tour this new facility located in the hamlet of Harrowby, roughly 15 kilometres west of Russell.

During the tour, PADCOM representatives showcased the unique way they extract potash, which involves injecting a brine solution into the ground and extracting the liquified substance, where it is then chilled and turned into crystal.

From there, potash can be used as an effective fertilizer and as the key component in a variety of industrial compounds.

Compared to the traditional room and pillar mining method, PADCOM president Daymon 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 Sun. “Manitoba just does it a little bit better.”

The PADCOM president, in general, was brimming with excitement during Friday’s tour and public presentation, since he has 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 that local ownership was the way to go.

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

Even though this mining operation remained in limbo for quite some time, Guillas said that all changed when Heather Stefanson became Manitoba premier in late 2021 and immediately jumped at the opportunity to collaborate with PADCOM.

Stefason’s government granted PADCOM permission to start extraction and production last June, with the Economic Development, Investment and Trade department formally approving the corporation’s mine closure plan in March of this year.

The premier attended Friday’s ceremony to congratulate PADCOM for bringing this project across the finish line, saying 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.”

One of PADCOM’s main objectives with this project is to ensure that Westman communities directly benefit from the 250,000 to 500,000 tonnes of potash that it’s looking to produce every year.

Because of this, PADCOM made Gambler First Nation a 20 per cent equity partner in the mine and is committed to sharing 11 per cent of its net profits with other First Nations and groups like the Manitoba Métis Federation.

During Friday’s ceremony, Gambler First Nation Chief David LeDoux told the crowd that he has been working with Guillas on this project for roughly a decade, which has allowed him to pursue other lucrative economic development opportunities for his home community.

“It’s something that everyone should learn to do because all you do is make good friends when you work with people who have the same vision for the province,” he said. “I’ve heard quite a bit about how we’re a ‘have-not’ province, but I think that’s going to change pretty quick.”

As of right now, Guillas said the mine is at the pilot stage of its potash production, with only around three tonnes being extracted every day.

But once the facility’s heating and cooling systems are fully operational in two months time, the PADCOM president estimates that it could be producing five to 10 tonnes of potash every hour.

While this production rate won’t rival well-established potash mines that currently operate in neighbouring Saskatchewan, Guillas is confident that PADCOM won’t have a problem making a tidy profit, especially if it can find a way to ship its product internationally 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.

Canada is currently the world’s largest potash producer, accounting for 31 per cent of the world’s total in 2021, according to Natural Resources Canada.

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