The city of Regina in Saskatchewan on June 25 approved an agreement to provide a large portion of the city’s treated wastewater for Western Potash Corp.’s Milestone Potash mine, planned for opening in 2016 southeast of the community. Both company and city officials said the agreement will make the proposed solution mine the first in the world to utilize wastewater in the mineral recovery process.
“Western Potash is delighted to have reached this agreement with the city of Regina and is pleased to be working together to sustainably innovate the potash solution mining process,” declared Western Potash President and CEO Patricio Varas. “There are certainly no other potash solution mines in the world utilizing treated waste water.”
The agreement, if paid out annually, is worth more than $200 million to the city over 45 years, and will see up to 60,000 cubic meters of treated effluent diverted daily from the Regina wastewater treatment plant to the Milestone Potash Project mine site. The city will operate the pump house and pipeline and will be responsible for obtaining all necessary environmental approvals. Western Potash will fund the capital costs associated with the construction of the pump house and pipeline.
Once up and running, the Milestone Project will draw between 40 percent and 70 percent of Regina‘s wastewater.
“This innovation is a win-win for everyone,” said Acting Deputy Mayor Louis Browne. “Not only is the City of Regina now being compensated for treating a waste product, but we are facilitating economic growth in one of Saskatchewan’s key sectors: potash development. In addition, downstream negative effects such as increased algae will also be alleviated, making this a prime example of how creative thinking and partnerships can yield a more promising future for everyone.” The Milestone Project contains potash resources of sufficient size and grade to support solution mining for more than 40 years at a production rate of 2.8 million mt/y.
No roadblocks are anticipated, even though the proposal still must pass provincial and federal environment assessment. One Regina councilman called the proposal an “innovative and creative approach” to dealing with the city’s treated waste water that flows into Wascana Creek. “Additionally, we are facilitating the development of one of Saskatchewan’s key sectors, and that is potash development,” Browne said. According to a preliminary report, one negative aspect could occur each April when the fish are spawning. Environmentalists fear disrupting natural habitat during that time could have serious consequences. But Greg Vogelsang, Western Potash environment manager, says the creek is traditionally already running high at that time of year. “So to withdraw it or divert that water at that point in April is really having minimal effect on the fish habitat during April,” said Vogelsang.
According to Western Potash, the Milestone Project holds 66.6 million mt of measured recoverable resource, 186.9 million mt of indicated recoverable resource, and 708.2 million mt of inferred recoverable resource. This indicates the project contains potash resources of sufficient size and grade to support solution mining for more than 40 years at a production rate of 2.8 million mt/y.
Despite the wastewater news, it is still not clear when – or if – this option will ever be used. Western Potash remains a junior potash company actively seeking investors prior to completing its ongoing feasibility study, which would lead toward the actual building of the Milestone project. Back in April, prodded by news of a possible offshore investment, Western Potash issued a statement that it was, at the time, not currently involved in any negotiations for the outright sale of the company, but has met with, and is