Analyst says Jansen mine catalyst for ‘Saskaboom 2.0’

A Saskatchewan business analyst says the province will see the economic spinoffs of a new potash mine for years to come.

BHP announced Tuesday it will bring its long-delayed Jansen potash project into production. The $7.5 billion capital investment includes the construction of an underground mine, processing facility and rail infrastructure.

“It adds to the value or worth of the province,” said business commentator Paul Martin.

“Once you build a mine you can’t unbuild a mine. Saskatchewan will be forever changed by this.”

The ripple effects, Martin says will be felt for a long time with new jobs, investment at the community level and new royalty revenue for the provincial government.

BHP has spent billions already on the project that has been touted as the largest potash mine in the world, with annual production of 4.35 million tonnes.

Martin believes there’s room for another mine despite the potash industry just going through a major expansion.

“Global populations are growing; demand for food and fertilizer as a consequence is growing. By the time this (mine) comes on stream the demand should have caught up to all the growth (Saskatchewan) did in the last 10 years and it should not over-saturate the market. It should be just in time, is what (BHP) is betting on,” said Martin.

According to Martin, global commodity markets are in the early stages of a resurgence and the Jansen mine will help the province capitalize on that growth.

“Saskatchewan’s economy is taking off right now and it’s being pushed by investment capital,” he said.

“Saskatchewan is back into Sashays and Sashays 2.0.”