Production begins at Manitoba's 1st potash mine

A new potash mine is now in pilot production, Premier Heather Stefanson announced Friday.

The facility, located in Harrowby, about 16 kilometres west of Russell near the Manitoba-Saskatchewan border, is the province's first-ever potash mine.

"Mining in Manitoba has always been an essential contributor to Manitoba's economic prosperity," Stefanson said at the opening. "This is truly an exciting time for Manitoba's mining industry."

The mine is on track to be the world's lowest carbon footprint potash mine, Stefanson said. That's thanks to Manitoba Hydro's green energy that will be used to power it, she added.

The mining technique is also environmentally friendly, the premier said. The mine uses a selective solution mining process in which a heated mixture of water and salt is injected underground to dissolve the potash deposits. The mixture is then pumped to the surface and crystallized. 

Daymon Guillas, president of the Potash and Agri Development Corporation of Manitoba (PADCOM), the company that is running the facility, said the mine will benefit the local economy.

"Nobody will be hungry in this area when there's wealth like this, ever," he said.

The Manitoba government spent $300,000 in seed money on the project through the Manitoba Mineral Development Fund, Guillas said. This project is one of 53 supported by the fund since 2020, said Jeff Wharton, Manitoba's minister of economic development, investment and trade.

PADCOM also plans on sharing 11 per cent of the mine's net profit to local First Nation communities and the Manitoba Métis Federation, a release from the province says.

"We're all going to make a lot of money, but we're going to share it," Guillas said.

Gambler First Nation, south of Harrowby, is a 20 per cent equity partner in the project, the province says.

"Not only are they making history, they're promoting economic reconciliation and setting an example of how to do business right here in Manitoba," Wharton said.

The mine is set to extract 250,000 tonnes of potash per year.

"I've heard quite a bit of a 'have-not' province, but I think that's going to change pretty quick where we are going to be a 'have' province," said Chief David LeDoux of Gambler First Nation.

Developing the mine has been a 15-year-long process, LeDoux added. He said members of the community became frustrated with the amount of time it took to complete.

"It's a process that has to be learned and dealt with," he said.

Stefanson said the mining industry invested more than $170 million in exploration in Manitoba last year, and the province has improved significantly on the world stage in the mining sector.

"That is really exciting, but our work isn't done yet," she said.