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Saskatchewan's Resource Sector
We can view Saskatchewan as an undiscovered jewel, largely as a result of its unique political history. The fact that the two largest, locally headquartered, mining companies (PotashCorp and Cameco) were once Government owned enterprises reflects the Province’s economic development path. What currently remains in the ground, as a result of socio-economic choices, represents exceptional forward-looking potential, and this makes Saskatchewan one of the world’s most attractive, undeveloped resource frontiers.
The Province’s southern half is overlain by the Western Canadian Sedimentary Basin offering hydrocarbon based and other sedimentary resources like its westerly neighbour Alberta, while the northern part is comprised of exposed Precambrian Shield offering an entire suite of hard rock mineral potential. Saskatchewan hosts the best geological attributes Canada has to offer and opportunities are virtually unlimited.
- expansive suite of undeveloped minerals and hydro-carbons
- supplies 1/3 of the world’s potash
- supplies 1/4 of the world’s uranium
- 2nd largest oil producing province
- 3rd largest natural gas producing province
- 3rd largest coal producing province
- significant oil sands potential
- world’s largest diamond exploration project
- significant base and precious metal finds (zinc, copper, gold)
- largest rare earth minerals find in North America
- significant potential for helium and associated gases
- extensive infrastructure material potential
Saskatchewan... North America’s Resource Frontier
If we have all of this then why were we a Have-Not province? Historical government focus has been on jobs, not wealth creation, thus no capital market has ever developed in Saskatchewan. Very little capital has been raised locally. Nationalization within the resource sector and Government oversight virtually sterilized Saskatchewan’s capital market in the 1970’s. This detrimental political climate resulted in a very timid investor base, which further hampered resource development.
Saskatchewan’s resource capital market now has a very supportive government. Saskatchewan has implemented a responsible royalty structure and our Premier, Brad Wall, has been recognized outside the Province for this directive. Our long history of resource exploration has resulted in some of the worlds most successful mining operations. Mining exploration expenditures have increased from $30 million in 2004 to $430 million in 2008. In 2008, $1.12 billion was spent to purchase Oil & Gas rights in the province.
Investing in the future—Mining drives Provincial economic growth.
Saskatchewan has a World Class geological survey which is sponsored by the government and provides valuable information to the resource industry.
Saskatchewan has 27 producing mine facilities which provide over 25,000 direct and indirect jobs. Over $3 billion annually is spent on wages, goods and services, and over $1 billion is received in royalties and taxes. The minerals sector accounts for 6% of provincial GDP and oil & gas account for 8% of the province’s GDP. Saskatchewan oil & gas and mineral production and exploration is currently at a record high.
Both local and external capital is needed to explore and develop this Resource Frontier.
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