Potash and Agri Development Corp. of Manitoba (PADCOM) announced on Aug. 9 that the Government of Manitoba has awarded it Crown Mineral leases, which add more than 100 million mt of potash to the company’s lease and assets. The leases are in the North Block near PADCOM’s current mine near Russell-Bincarth, Man.
The province also announced a $1.03 million loan for a power line to the mine so it can eliminate reliance on diesel. The company said this would make it the lowest carbon emission fertilizer producer in the world. The electricity is generated by Manitoba Hydro.
PADCOM on June 9 officially commissioned the province’s first potash mine (GM June 16, p. 1). The mine will initially produce 50,000-100,000 mt/y using a selective solution mining process, which PADCOM expects will increase to up to 250,000 mt/y or more over an expected life of up to 100 years.
“PADCOM is pleased the Manitoba government has recognized and supported our efforts to develop Manitoba’s potash resource using a low-impact, green sustainable mining technique,” said Daymon Guillas, PADCOM President. “Access to explore more of the potash resource, in partnership with Gambler First Nation, will allow us to evolve from pilot stage to commercial production, including more investment in mining activity and logistics to get Manitoba potash to the world and this will benefit all Manitobans.”
The lease and loan align with Manitoba’s new Critical Minerals Strategy, as the mine both advances the growth of mineral development and is working to provide economic opportunities for First Nations. The strategy announced on July 25 lays out actions to guide the work of government, local communities, and the private sector, and maintains Manitoba’s momentum as a top destination for mineral exploration and production.
The strategy includes several pillars to strengthen resources that raise awareness of Manitoba’s significant critical minerals advantage, including advancing Indigenous partnerships; supporting geoscience research; streamlining regulatory processes; attracting value-added processing and manufacturing; and training a skilled workforce.
The strategy will be followed up with the Manitoba Minerals Action Plan, which will outline concrete and specific actions to achieve Manitoba’s mineral sector potential. It is expected to be released in spring 2024.
Manitoba claims it is home to 29 of the 31 minerals on Canada’s 2021 Critical Minerals List. This includes lithium, graphite, nickel, cobalt, copper, and rare earth elements, which are the six minerals recognized as having the greatest opportunity to spur economic growth and fuel domestic supply chains.
Manitoba said it has seen a substantial increase in mineral exploration over the last three years, with $67.7 million in expenditures in 2020, $99.2 million in 2021, and $170 million in 2022, the highest level of exploration expenditures in the history of the province.
The province ranked 14th for investment attractiveness in the Fraser Institute’s 2022 Survey of Mining Companies, a positive shift from 32nd in 2021, and 37th in 2020. Nearly 50 companies are currently exploring for critical minerals in Manitoba, and the Manitoba government is working to achieve a top 10 ranking in the coming year.