Potash is a major topic of conversation in Saskatchewan, and it is even putting the province on the map internationally.
Headlines from local, national and international media sources are talking about Ottawa turning down BHP Billiton’s foreign takeover of PotashCorp on Wednesday.
The New York Times, as well as newspapers in Australia, Ukraine and Taiwan have all picked up the story.
While the decision by Investment Canada is not what some people around the world were hoping for, Business Analyst Anne Lavack says all the talk about Saskatchewan’s resources does not hurt.
“They say that any publicity is good publicity,” Lavack said. “In that view, Saskatchewan has gotten a lot of publicity that way.”
For Premier Brad Wall, it is an opportunity he is taking advantage of.
“It does give us a chance to tell our story, and that’s a chance we should always welcome,” Wall said.
People around the world are looking for more information about potash and the province. The last time Saskatchewan was “googled” as much as it has been recently was in 2007 when the Saskatchewan Roughriders were in the Grey Cup.
“I think this whole debate has been an opportunity to put Saskatchewan on the map,” Lavack said. “People understand now that Saskatchewan is a very resource rich province. We have potash, we have oil and gas. We are a great agriculture producer- one of the bread baskets of the world.”
By looking at the numbers, it is obvious why the proposed takeover has attracted so much attention. A huge part of Saskatchewan is its natural resources.
The province has 50 per cent of the world’s potash supply, with 30 per cent of the world’s potash production. For oil, Saskatchewan is the second largest, and fifth when U.S. states are factored in.
Saskatchewan also has the third largest reserves of coal and natural gas in the country, and 20 per cent of the global uranium production.
With all the natural resources in the province, the “no deal” by Ottawa may deter other foreign investment in the future, but Lavack says that is likely not the case.
“I think that Minister Tony Clement made it very clear that Saskatchewan and Canada are open for foreign investment,” Lavack explained. “In fact, Canada also invests heavily in foreign countries, so it’s a two way street.”
BHP still has a 30 window in which they can alter their bid for PotashCorp, meaning the world wide buzz about Saskatchewan will not be silenced for a while.
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