The provincial government of New Brunswick on Oct. 21 issued a Request for Proposals (RFP) for potash exploration in the Salt Springs and Cassidy Lake areas, southeast of Norton.
“Potash has been an important contributor to the local and provincial economy in New Brunswick for more than 50 years,” said Natural Resources and Energy Development Minister Mike Holland. “Our current geopolitical climate has clearly shown how requirements for natural resources connect us and affect us globally. As the only region along the eastern seaboard of North America that has mined potash resources, this is a great opportunity for New Brunswick.”
The area in question is about 26,350 hectares in size. Most of the land is privately owned.
Interested parties will have until Dec. 20 to submit proposals outlining how they would conduct exploration for potash resources, and in the event of a discovery, how they would develop potash and/or related evaporite mineral deposits.
This RFP is for exploration only. If no satisfactory proposals are received, exploration rights will not be issued.
The province said any successful proponent will enter into an exploration agreement outlining how the work will be done. Exploration activity of a damaging nature may not proceed without landowner permission and a work authorization from the department.
The exploration agreement would also specify the terms of a mining lease agreement, which would be made available in the event the construction of a mine or processing facility were approved.
Potash has been identified as a critical mineral by Natural Resources Canada. It was placed on Canada’s Critical Minerals List 2021, a list of minerals essential to Canada’s economic security.
Nutrien Ltd. announced in November 2018 (GM Nov. 9, 2018) that following a strategic review of the company’s potash portfolio, it decided to permanently close its New Brunswick potash facility. It recorded a US$1.8 billion non-cash impairment in the third quarter of 2018 as a result.
The company said at the time that it had no plans to sell the mine. The facility had been placed in care and maintenance in early 2016 (GM Jan. 22, 2016) and has not produced potash since that time, though it has continued to produce salt (GM Feb. 5, p. 13). Nutrien said the decision to close the New Brunswick facility reflected the company’s ability to increase potash production in Saskatchewan at a significantly lower operating and capital cost than resuming production in New Brunswick.
“The world potash market continues to evolve daily, and there is considerable uncertainty with regards to production levels in Eastern Europe as a result of the conflict in Ukraine and the sanctions on Belarus,” a Nutrien spokesperson told Green Markets, when asked if Nutrien may have rethought its plans for New Brunswick.
“On March 16, we announced a plan to safely and sustainably increase 2022 potash production capability to approximately 15 million mt in response to the uncertainty of supply from Eastern Europe. The majority of this additional volume is expected to be delivered in the second half of the year, and the additional volume will come from our six low-cost potash mine sites across Saskatchewan. On June 9, during our Investor Day call, we announced an additional potash production capability to 18 million mt by 2025,” the spokesperson said.
“In utilizing our mine network in Saskatchewan for additional capacity, we have no plans at this time to expand our New Brunswick mine,” the spokesperson continued. “We’re proud to be a member of the Sussex community and take a long-term view to our operations. The provincial government has extended the existing contract with Nutrien and its mine in the Sussex region for the supply of road salt. This is excellent news for both the province and Nutrien as it enables us to maintain our presence in the province, retain our local experienced workforce, contribute to the local economy through taxes, royalties and community investment, and provide an essential product for safe winter driving.”