China International Mining Companies to Explore Potash in Saskatchewan Province, Canada
Oct/20/2009 | Under Companies - Mineral Exploration
China mining companies, China’s Zhongchuan International Mining Corp. conducted a survey exploring the possibility of Potash in the province of Saskatchewan, Canada. China mining company belief investment on potash exploration very promising.
Mining company’s investment plans China is getting a positive response from the government of Saskatchewan. Government of Saskatchewan has given exploration rights in the mining company in September 2008.
The company’s Canadian subsidiary, Canada Jiuyi, is drilling and conducting seismic tests on a 96 square kilometre (37 square mile) site southeast of the city of Saskatoon, Ellis said. If developed, the site could produce 3 million tonnes of potash annually, the official Xinhua news agency said on Monday.
“It certainly says a lot about what people see as a highly valuable resource and commodity that we have here in Saskatchewan,” Ellis said. “The industry is optimistic about its long-term prospects.”
Under the terms of its agreement, Zhongchuan has up to four more years to explore for potash, but can also apply for extensions.
The company does not own the land, which has not been mined before.
If Zhongchuan decides it wants to develop the site into a mine, it would need further government approvals.
One other Chinese company, Taiji Resources Ltd, has active exploration rights in Saskatchewan, Ellis said, adding he didn’t have details about how much work that company has undertaken.
Major producers Potash Corp of Saskatchewan, Mosaic Co and Agrium Inc are among the active potash miners in Saskatchewan and all are expanding. Australian miner BHP Billiton is in the early stages of planning its own potash mine in the Western Canadian province, which is a major world source of the fertilizer.
Prohibitive mine-building costs have forced a handful of potash exploration companies to look for overseas investors, or strategic players that are interested in partnering in their projects.
Juniors such as Athabasca Potash, Potash One and Western Potash have all been reported to be engaged in talks with Chinese and Indian companies that are eager to secure potash supplies due to growing demand for fertilizer in those two big markets.