Potash and Agri Development Corporation of Manitoba Ltd. (PADCOM) has received final approval to commence commercial production at Manitoba’s first potash mine (GM June 17, 2022). The approval came earlier this month from the Director of the Mining, Oil, and Gas Branch of the Manitoba Department of Economic Development, Investment, and Trade.
Construction of the project is estimated at 99% complete and potash production could come within four weeks, according to Harvey Haugen, President of Beechy Potash Products Corp., Beechy, Sask., which is a partner in the project. Haugen owns the technology patent PADCOM is using for the solution mining.
PADCOM said the technology has a reduced environmental footprint, eliminates the necessity of salt storage on the surface, and reduces energy and water consumption. The project will also use hydroelectric power. “A typical underground mine for potash produces about a thousand pounds of carbon for every mt of potash,” said PADCOM President Daymon Guillas. “When we’re up and running fully, with Manitoba’s electricity, we’ll be at 21-36 ounces, so we’ll be classified as a near zero-emission fertilizer, the first ever in the world.”
The mine will initially produce 50,000-100,000 mt/y, which PADCOM expects will increase to up to 250,000 mt/y or more over an expected life of up to 100 years.
The mine is located in the Hamlet of Harrowby, approximately 16 kilometers west of the Municipality of Russell-Binscarth, Manitoba. It is just across the border from other successful potash mines in Saskatchewan.
PADCOM has developed a partnership with Gambler First Nation, which intends to invest for a 20% equity stake in the project.
Last summer, PADCOM said its plan was to sell the product to a single customer loaded on trucks (GM June 17, 2022). The buyer would be responsible for logistics. As of last June, an offtake deal had not been finalized. PADCOM told Green Markets it had nothing to announce at this time.
In related news, a Manitoba government delegation promoted the province as a top destination for mining investment at the recent Prospectors and Developers Association of Canada (PDAC) Conference in Toronto, which focuses on mineral exploration and development.
In addition to touting the PADCOM project, the Manitoba Economic Development, Investment and Trade Ministry said approximately 60 companies have exploratory permits in Manitoba, with over 70% of which are looking for critical minerals.