Fredericton, N.B.—The New Brunswick provincial government said May 11 that it will conduct a resource assessment of the Penobsquis potash deposit, which was idled by Potash Corp. of Saskatchewan Inc. last November (GM Nov. 2, 2015). “Our government believes in the safe and responsible development of our natural resources to help create jobs and grow the economy,” said Energy and Mines Minister Donald Arseneault. “As responsible managers of our province’s resources, we have an obligation to review and fully understand what, if any, potential resource remains in the Penobsquis potash deposit.” The Department of Energy and Mines is working to finalize a contract to hire a third-party consultant to carry out an assessment of any remnant potash resource and its potential for development in the event potash prices recover to suitable levels. It is anticipated that the assessment will take several months to complete. More details will be provided once the contract is finalized. Not only did PotashCorp idle the Penobsquis mine, citing its uneconomic status, but also its replacement mine, Picadilly, saying its Saskatchewan mines were more economic in today’s market (GM Jan. 22, p. 1). Earlier this month, PotashCorp registered for an environmental impact assessment (EIA) to officially decommission the mine, a process which the company said normally takes 90-120 days. While the EIA process can continue, PotashCorp told Green Markets last week that the mine cannot be decommissioned until after the province completes its resource assessment, which could be longer than the EIA timeline. In the meantime, until the mine is decommissioned, PotashCorp is expending some C$50,000 per day to pump water from the mine and truck it for disposal in the Bay of Fundy at Saint John. PotashCorp believes the Penobsquis mine should be allowed to flood, adding that should mining economics return, the ore could be accessed via the existing Picadilly mine.
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