The Saskatchewan government is making changes to its potash regulations aimed at improving opportunities in the potash sector — specifically for junior producers involved in innovation along with research and development.
New regulations include tax credits of 40 per cent of eligible expenditures for qualified research and development projects and approved development programs.
The changes will also allow companies to take advantage of the credits by removing expiry dates and enhancing eligibility requirements.
“These changes will promote the expansion of Saskatchewan’s potash sector and ensure that our province remains the preferred jurisdiction in which to pilot innovative technologies,” Energy and Resources Minister Bronwyn Eyre said.
“As we move into economic recovery, we want to attract and foster new, sustainable advancements in our province’s world-class resource sector.”
Qualified research and development projects must show ways on how to improve production efficiency, mitigate environmental impacts, reduce physical risks to employees and mine operations, or develop new and improved potash products.
To be eligible for market development credits, companies must develop new markets or expand existing ones.
“We are very pleased to see clear leadership with respect to the amendments to the Saskatchewan Potash Production Tax Regulations,” Gensource Potash Corp. president and CEO Mike Ferguson said.
“The amended regulations dovetail with the leadership in innovation that Gensource is deploying at its Tugaske project. Gensource welcomes the amendments to the regulations and looks forward to providing long-term economic benefit to the Saskatchewan community while demonstrating real-world ESG leadership.”
The province’s potash sector accounts for roughly 30 per cent of the world’s production and employs about 5,000 people.
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