Legislative Report
June 1, 2023

Future is Bright for Saskatchewan’s Mining Industry

Saskatchewan recently recognized Mining Week, a chance to celebrate the strength of the industry and the hard-working people who support it across the province. This year’s theme, “Saskatchewan: A Growing Critical Minerals Hub,” builds on the success of our critical minerals strategy, released earlier this year.

The future is bright for Saskatchewan’s mining industry. While our province has long been a top global producer of potash and uranium, the province is now home to growing helium and lithium sectors and the first-of-its-kind rare earth processing facility in North America.

As critical minerals become increasingly important to the global economy, Saskatchewan has the opportunity to secure its place as a global leader in these industries. Critical minerals are essential to the economy, energy security and everyday life, and are used in the production of everything from clean energy to consumer electronics.

The presence of critical minerals combined with existing expertise in mining and processing positions Saskatchewan as a critical minerals leader today and into the future. Our government launched Securing the Future: Saskatchewan’s Critical Minerals Strategy in March of this year to drive growth and development in the critical minerals sector. The strategy outlines four goals for the sector: to increase Saskatchewan’s share of Canadian mineral exploration spending to 15 per cent by 2030, to double the number of critical minerals being produced in Saskatchewan by 2030, to grow Saskatchewan’s production of potash, uranium and helium, and to establish Saskatchewan as a rare earth element hub.

In the 2023-24 Provincial Budget, our government expanded three programs to pave the way for critical minerals development. The Saskatchewan Mineral Exploration Tax Credit was increased from 10 to 30 per cent and the Targeted Mineral Exploration Incentive, which applies to exploration drilling of all hard-rock minerals, was increased from $750,000 to $4 million. In addition, $2.4 million was invested to provide better systems for geoscience data collection and reporting, which explorers use when considering projects.

For companies looking to expand and invest, the Saskatchewan advantage is clear. The Fraser Institute’s 2022 Annual Survey of Mining Companies ranked Saskatchewan third in the world and first in Canada in the Investment Attractiveness Index. Our province also ranked second in the world for mineral potential. Saskatchewan continues to be a standout jurisdiction to invest in with our outstanding resource potential and strong policies that support mineral exploration and development.

The strength of the province’s mining sector is evident in last year’s record-breaking numbers. The total value of sales more than doubled the previous record for a total of over $19.4 billion thanks to increased production, higher mineral prices in response to supply chain disruptions and ever-increasing global demand. The reopening of the McArthur River mine last year in northern Saskatchewan allowed for increased production volumes of uranium, while gold saw the highest production numbers in over 30 years with a record 136,000 ounces extracted from the Seabee mine. The potash industry achieved record value of sales and record production, stepping up to alleviate global food insecurity concerns due to geopolitical instability that continues to impact global supply. The potash industry in the province has committed to continue to invest in increased production to meet global demand.

Growth in the mining industry is growth that works for everyone. For more information, visit saskmining.ca.