Canadian Manufacturing

Vale suspends operations at Sask. potash mine

The Brazilian miner says a recent feasibility study shows a compelling case for the mine in Kronau, but market conditions are complicating finances

KRONAU, Sask.—The long-awaited potash mine at Kronau, Sask., is in limbo once again, with Vale Potash putting the project on hold.

The Brazilian mining company announced the decision to suspend work on the mine in a public letter to the local community.

Vale says the recent feasibility study still shows a compelling case for a mine in Kronau someday, but market conditions make it difficult to finance the project right now.

Matthew Wood, senior project leader at Vale, says there just isn’t an opportunity to start any new construction next year.

The $3.5 billion mining project was projected to create 2,000 construction jobs and 350 permanent jobs.

The mining giant currently operates with a team of about 30 people in Saskatchewan.

“We’re just sort of evaluating what we can do with those staff, whether we can re-assign them other places, whether we can find other opportunities for them,” Wood explained.

He said a much smaller core team of people will remain in the province to maintain the land holdings along with government and community relations. There is no word specifically on how many people that will be.

Wood said the project is still very strategic for the company in the long-term, but the timeline to restart is dependent on market value.

Erwin Beitel, reeve of the Rural Municipality of Lajord, said he’s optimistic the project will eventually happen.

“It’s just going to be a wait-and-see situation and who knows, in two years, four years, 10 years, they’ll come out. This has been suspended before and then started up again,” he said.

The mine was postponed back in 2012.

Beitel said nobody lost jobs in the local community because the work hadn’t really started on the site yet. In fact, the land is still being farmed.

“There’s really no workforce that was out there at all, it’s just sitting in limbo for now,” he said.

Story filed by Radio Station CJME in Regina.

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