Legislative Report
January 19, 2023

Saskatchewan World Leader in Rare Earth Element Development

Saskatchewan’s future as a North American mining and critical earth processing hub is bright. In our 2030 Growth Plan, we stated that our province would create the first North American rare earth elements (REE) processing facility. REEs are a key component used to manufacture permanent magnets used in electric vehicles, wind turbines and electronics.

To make this goal a reality, our government announced it would invest $31 million in the Saskatchewan Research Council (SRC) REE processing facility. The first phase of the project, a monazite processing unit, was unveiled in September 2022 and is operation-ready for 2023. The second phase includes a separation unit. We invested an additional $20 million in 2022 to add a third phase to the facility, a metal smelting unit. This unit will produce rare earth metals, a key ingredient used to manufacture permanent magnets. Both the separation unit and metal smelting unit will be operational in 2024 and will be producing rare earth elements products for sale in international markets, including individual rare earth oxides and didymium metals.

SRC’s facility will be the first of its kind in North America and is already beginning to establish a vertically integrated REE supply chain in Saskatchewan, forming an industry model for future commercial REE resource expansion in the province. This facility also positions Saskatchewan as a key player in the clean technology industry. With the ability to process REEs in Saskatchewan, we can reduce our reliance on foreign markets as we transition to clean energy right here at home.

This industry expansion is already taking place as Vital Metals constructs its own separate rare earth extraction facility in Saskatoon. Vital Metals will take REE ore that is mined at its Nechalacho mine in the Northwest Territories, process it at their facility here in Saskatoon.

Our province is a great place for investments from both the government and private sector investors in the mining industry. Saskatchewan was selected as the best jurisdiction for mining investment attractiveness in Canada and second globally, according to the Fraser Institute Annual Survey of Mining Companies. The survey ranks jurisdictions on factors such as stability, regulations, tax regimes, infrastructure and geological attractiveness. Along with this investment attractiveness for mining companies, Saskatchewan boasts world-class research facilities and strong supplier networks.

The province can support developments like the SRC and Vital Metals facilities with a strong and growing workforce. Annual labour force figures show Saskatchewan had 576,000 people working in 2022, an increase of 18,600 from 2021. This is the second-largest percentage increase since records began in 1976. The province is well on its way to creating 100,000 new jobs by the end of 2030, another Growth Plan goal.

In support of this emerging industry, Premier Moe is working to promote Saskatchewan’s important role in producing REEs and connecting with critical trading partners. In December last year, he met with key stakeholders in Washington, D.C. to promote Saskatchewan as an essential mineral trading partner. We continue to work to identify opportunities to strengthen the critical mineral sector and explore ways to address global energy concerns.

With significant projects like these well underway, growth in the mining and technology industries will continue in the coming years, making Saskatchewan a leader in the REE field.