Saskatchewan Mining and Minerals Inc. (SMMI), Chaplin, Sask., said on March 23 construction of a new C$220 million sulfate of potash (SOP) fertilizer production upgrade at its SMMI sodium sulfate plant is scheduled to begin by late 2021. The upgraded facility is expected to be complete by the end of 2023 and produce 150,000 mt/y.
SMMI said the decision to proceed was primarily based on the completion of a favorable preliminary feasibility study conducted by the Wood Group, Saskatoon.
In addition, the company cited the Saskatchewan Ministry of Environment’s determination that the expansion is not a development and will not require further environmental approvals, and the Saskatchewan Government’s conditional approval for funding of this major upgrade through the Saskatchewan Chemical Fertilizer Incentive (SCFI) (GM July 31, 2020).
The SCFI is a non-refundable, non-transferable 15 percent tax credit on capital expenditures valued at C$10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.
“The Government of Saskatchewan has been engaged and highly supportive in their efforts to get behind SMMI, as it seems our project is directly aligned with their 10-year plan to create jobs, stimulate the economy, and help build a strong economy and quality of life for Saskatchewan people,” said Rodney McCann, SMMI President.
“Saskatchewan is the only place on this planet that has the abundance of natural resources, the infrastructure, reputation, climate, people, and progressive supportive government to allow for a project like this,” added McCann. “In these challenging times, it seems only natural for an absolute ‘only in Saskatchewan’ opportunity to take center stage in the rapidly growing global plant nutrition industry.”
As for how the SOP will be marketed, SSMI said it is currently in discussions with several companies to finalize offtake agreements.
SMMI said it sees great potential in combining its world-class sodium sulfate with Saskatchewan-produced potash to produce a high-value, premium SOP fertilizer for domestic and international growers. The company said while it has not finalized its potash supply agreement, it will be sourcing potash from one of the several nearby potash mines, all of which have excess capacity to meet company requirements.
SMMI added that it currently has sodium sulfate reserves in several locations in Saskatchewan, including additional locations that can be brought on stream immediately. It said it has the capacity and reserves to supply the 150,000 mt/y Chaplin facility for more than 20 years. It said it has further capacity and reserves strategically located within Saskatchewan that allow for up to 400,000 mt/y of additional SOP production for over 25 years.
In business nearly 75 years, the private, family-owned SSMI said its sodium sulfate serves over 80 customers across several industries, including detergents, pulp and paper, glass, starch, industrial enzymes, water treatment, and livestock mineral feed.
SMMI has selected Veolia Water Technologies to develop the process design for the new project. The company said the upgrade will implement cutting-edge design and technology, the first of its kind in Canada, which promises to be up to 25 percent more energy efficient than technology currently being used to produce SOP.
“SMMI’s fertilizer production upgrade is an exciting move forward, with a dedication to sustainability,” said Jim Brown, CEO of Veolia Water Technologies Americas. “We are proud to partner with SMMI on this project and look forward to what’s to come.”
SMMI said the expansion will have immediate and long-term positive economic benefits for the town of Chaplin and for the Province of Saskatchewan as a whole. Construction on the upgrade is expected to take up to two years and will generate up to 700,000 labor hours. Once complete, the addition of SOP production will result in an estimated 50 percent increase in jobs at the Chaplin facility on an ongoing basis.
“As we emerge and recover from the COVID-19 pandemic, Saskatchewan’s rural communities and industries will play a vital role in that recovery,” said Lyle Stewart, MLA for Lumsden – Morse. “Saskatchewan Mining and Minerals’ SOP fertilizer upgrade is leading that charge, and will help us deliver on our mandates of growing our natural resource and agricultural economies, creating jobs, and growing Saskatchewan exports.”