Proposed Yancoal potash mine divides Saskatchewan community
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Mine project currently under review by government
By Adam Hunter, CBC News Posted: Jun 15, 2016 5:52 PM CT| Last Updated: Jun 15, 2016 5:54 PM CT
About 60 people crammed into a room at the legislature on Wednesday to voice their concerns over a proposed Yancoal potash mine near Southey.
"Ten years ago the province was begging to have a community like ours, now they are set to destroy it," said Neil Wagner a Southey area business owner who grew up near the mine site.
"Our concern is about the environmental impact this is going to have and that's our issue with it."
Millions of cubic metres of water to be used
Yancoal, which is owned by the government of China, wants to build a solution mine, which would use millions of cubic metres of water each year to dissolve the potash.
In solution mining, water is poured into wells to bring potash up to the surface instead of conventional digging and extraction of the mineral from underground mine shafts.
Yancoal has a license to use water from the Buffalo Pound reservoir for the proposed operation and is also set to pay a water rights fee to Saskatchewan's Water Security Agency.
The mining company has said it will need a maximum of between 11 and 12 million cubic metres of water annually, but that amount will reduce substantially after operations are stable.
Yancoal has said it could start construction as early as this year. But opponents believe that the mine is not necessarily a done deal.
"If you feel you're too small to be effective -- have you ever been in a room with a mosquito in the dark?" said business owner and resident Thera Nordal. "We will continue to make noise until our voices are heard."
'Disappointed' after meeting with local MLA
The government had extended its period for feedback from 30 to 45 days, that expired on June 6. The group of concerned residents asked to meet with the minister of environment and the minister of economy. Instead they met with their MLA Glen Hart on Tuesday night.
The group described the meeting as disappointing. Wagner said Hart alluded to the economic need for this project.
"This community may need to look at possibly sacrificing themselves because the government needs the resource money right now, Wagner said. "He mentioned it at the beginning of the meeting and he repeated it at the end of the meeting."
On Wednesday afternoon, Hart denied that he implied the community should sacrifice itself for economic benefit.
"I didn't say anything like that," Hart said. "There are other companies that are looking at developing potash mines and I said if they don't develop now, perhaps later on ten years down the road or less, depending on the potash market."
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Critics of Yancoal potash mine want project slowed down
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Solution mine would use millions of cubic metres of water annually
CBC News Posted: Jun 06, 2016 1:46 PM CT| Last Updated: Jun 06, 2016 4:25 PM CT
A group that includes environmentalists, opposition politicians and landowners is raising concerns about a proposed potash mine north of Regina.
Yancoal, which is owned by the government of China, wants to build a solution mine, which would use millions of cubic metres of water each year to dissolve the potash.
Jim Harding, an environmentalist with the Qu'Appelle Valley Environmental Association who lives downstream of the proposed mine, says the Qu'Appelle Valley watershed is already in a fragile state.
"Everything from surface water, pesticide, fertilizer, Regina untreated sewage, road impacts on wetlands," Harding said.
"We need to start to care about our environment."
Harding says the project cannot be allowed to go ahead if it means sacrificing the Prairie habitat. He said an extension to the period of public feedback should be extended beyond today's deadline.
Company says project has many supporters
Robin Kusch, spokesperson for Yancoal, said there are many local people who want the project to go ahead.
"You can't ignore the fact that there are community members and communities that are supportive of the project," Kusch said.
"You can't ignore the fact that people see the potential positive benefits; not just royalties or taxes but spinoff economy in terms of contracts for vending and supplying goods to the project. Plus you have employment that would be associated with it."
Kusch said Yancoal also hopes to work closely with those who do not support the project.
"Accommodating the people who are opposed to the project going forward will be the key to the success of this project," Kusch said. "We have to work with them to minimize the negative impacts to their communities and then work with them to optimize the positives."
Government still reviewing potash mine
The provincial government said it has already extended its time period for public consultation from 30 days to 45. Today will be the final day for the government to accept feedback.
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People around Earl Grey, Sask., discuss proposed potash mine
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Public meeting held in Earl Grey
CBC News Posted: Jul 23, 2015 1:33 PM CT| Last Updated: Jul 23, 2015 10:34 PM CT
People from around Earl Grey, Sask., took part in a public meeting Thursday to discuss a proposed Chinese-owned potash mine in the area.
Yancoal Canada, which operates coal mines in China and Australia, is proposing a potash mine with an annual output of 2.8 million tonnes near the communities of Earl Grey, Southey and Strasbourg.
Prior to the meeting, local resident Cathi Beckel said she has concerns about the project, noting there are too many risks — including water security issues and a boom and bust job situation — with too few benefits.
"I'm concerned about our environment. I'm concerned about our farmers. I'm concerned about our communities," Beckel said. "These big industries come in and they really change communities."
Representatives from Yancoal, and provincial officials from the ministries of the economy and the environment were at the meeting to make presentations on the proposal. There was also a question and answer session.
MAP EARL GREY july 23 2015
The proposed site for the potash mine is just north of Earl Grey, Sask. (Google Maps/CBC)
The project plans to use a solution mining technique where water is poured into wells to bring potash up to the surface instead of conventional digging and extraction of the mineral from underground mine shafts.
Yancoal has a license to use water from the Buffalo Pound reservoir for the proposed operation and is also set to pay a water rights fee to Saskatchewan's Water Security Agency.
Yancoal spokesperson Asad Naqvi said the company will need a maximum of between 11 and 12 million cubic metres of water for the mine annually, but noted the amount will reduce substantially after operations are stable.
"I don't know the exact number but it would be quite a lot," Naqvi said. "Initially it would be high but then you start recycling the water and the amount goes down."
Beckel said water usage is a big concern and described the proposed operation as needing an "incredible amount" of water.
Carol Nixon, another local resident, had a similar view and said water should not be compromised for a foreign-owned business.
"Freshwater is our lifeblood. Without it our communities won't exist," Nixon said prior to the meeting. "We're upset."
Naqvi said the amount of water Yancoal will use is a sustainable amount, based upon an environmental impact study.
"That would not affect the human use or even the farming use," he said.
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Chinese company buys potash properties near Regina
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CBC News Posted: Sep 30, 2011 4:28 PM CT| Last Updated: Sep 30, 2011 4:21 PM CT
A Chinese firm has bought eight potash exploration sites near Regina for $110 million.
China-based Yancoal Canada Resources Co. Ltd. bought the properties from North Atlantic Potash Inc., the latter revealed on Friday. North Atlantic is itself the Canadian subsidiary of Russian fertilizer company JSC Acron.
North Atlantic CEO David Waugh said the sale allows the company "to substantially increase" its exploration of other sites in Saskatchewan.
North American Potash began a partnership with a major international mining company, Rio Tinto PLC, only a few days ago.
"North Atlantic Potash has moved quickly to prioritize and maximize the potential of its potash permits in Saskatchewan," company president Arie Zuckerman said Friday in a release.
"After a successful closure of an important JV with RioTinto, this deal positions North Atlantic as a central player in the emerging potash development arena," Zucherman said.
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Rio Tinto, North Atlantic Potash sign mining deal
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September 27, 2011
A major Russian company and global mining giant Rio Tinto PLC are teaming up in a joint venture that could lead to the construction of the next big potash mine in Saskatchewan.
Financial terms of the deal between North Atlantic Potash Inc., the Canadian subsidiary of Russia's JSC Acron, and Rio Tinto were not revealed.
"This agreement is another step to maximize the development potential of our vast potash exploration holdings in Saskatchewan," said Arie Zuckerman, president of North Atlantic Potash.
"We strongly believe that together with the professional experience and financial capabilities Rio Tinto brings into this project, we will be able to be the next producing mine in Canada."
The transaction is part of a broader trend of potash producers joining forces on new projects as global fertilizer demand rises in tandem with an ever-increasing demand for food in emerging economies.
The Saskatchewan deal gives Rio Tinto a stake in the world's most prolific potash producing region, while the Russian company will benefit from the Anglo-Australian miner's rich cash resources and longstanding mining experience in Canada and around the world.
"This joint venture, in my opinion, isn't as much for cash as it is for technical ability and know-how," said Marin Katusa, a market strategist with Casey Research.
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