Watch above: The price of oil continues to fluctuate causing uncertainty in many sectors but Premier Brad Wall says Saskatchewan is in good shape. Joel Senick takes a look at our diversified economy and why business leaders remain optimistic.
SASKATOON – Mosaic Company’s $1.7 billion investment in its Esterhazy operations highlights the difference between Saskatchewan and other resource rich economies, according to a Saskatoon business insider. On Monday, Mosaic announced an expansion to it’s K3 potash mine project in southeast Saskatchewan.
Company officials say they expect as many as 600 workers on site during its peak construction period.
“It really gives the texture of Saskatchewan as distinct from other resources bases,” said Kent Smith-Windsor, the Saskatoon Chamber of Commerce’s executive director, of Mosaic’s announcement.
“Whenever you get someone who’s putting $1.7 billion in play, that says they have confidence in the market,” he added.
READ MORE: Province to rely on potash, agriculture during low oil prices: premier
According to the provincial government, the potash industry is slated to invest approximately $12 billion in expansion projects by 2020. The mineral is primarily used as fertilizer around the world.
The Mosaic investment comes at a time when the low price of oil could hand the provincial government a shortfall of up to $800 million. Premier Brad Wall has said he hopes other sectors, like potash and agriculture, can help pick up the slack.
“The agricultural sector itself, the potash industry, the uranium industry, and oil and gas and hopefully some things in the forestry sector, all of those things say that there’s great strengths here,” said Smith-Windsor.
Mosaic’s Esterhazy site is expected to start producing potash by late 2017.
“A project like this, it’s a forward looking thing, we’re investing for the next eight to ten years,” said Walt Precourt, senior vice president of potash operations for Mosaic, after the announcement on Monday.
Smith-Windsor added that the investment should be felt in the city centres of the province as well as in the rural area where the site will be located.
“A lot of the design support, a lot of the fabrication support and the ongoing supply to that project will be fed out of Saskatoon,” said Smith-Windsor.
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