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Page D-2 THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

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Coal mining in Sas-k a t c h e w a n h a s b e e n around for more than a century.

The earliest recorded observations of the coal seams in southern Sas-katchewan are found in the Palliser Expedition report by James Hector and Captain Palliser in 1857.

The inves t iga t ions in the Souris Valley of t h e E s t e v a n m a p p i n g area were prompted after learning of First Nations descriptions of coal seams exposed in the coulees and valley walls.

T h e I n t e r n a t i o n a l Boundary Commission report of Dawson (1875) followed. Shallow boring operations were conduct-ed into several seams be-tween the Souris Valley, Estevan and the Turtle Mountains, Southwestern Manitoba. However, the ear l ies t thorough geo-logic reports related to the southern coalfields were known to be written in 1914 and 1918.

Mining started in the ea r ly 1870’s . In 1923 individuals of native de-scent could recall mining along the banks of Wil-low Bunch Lake as early as 1872.

The earliest l ignite mining in the Cypress map-area is not recorded, but it is probable that the Mounted Police station at Fort Walsh utilized the lo-cally excavated seams.

George and Sidney Pocock reached the Souris Valley in the spring of 1880 and , w i th Chr i s Troy, a local homesteader, located several outcrops. Samples were extracted and taken to Winnipeg and Hugh Sutherland or-ganized an expedition to Roche Percee. There, the first load of commercially mined lignite was shipped on barges down the Souris and Assiniboine Rivers to Winnipeg.

The lignite seams pri-marily served farmers in the immediate vicinity of the lines during the late 19th century and early 20th century.

The market area of the Estevan coalfield wid-

Earliest coal seams found in 1857ened be tween the la te 1920’s and 1940’s with its use as an industrial fuel in Moose Jaw, Regina, Brandon, Winnipeg and minor local points in the area.

Small quantities were shipped infrequently to Swif t Cur ren t , Saska-toon and several towns in western Ontario.

The Mani toba and western Ontario markets for Saskatchewan lignite product ion were aided by the ban on export of American hard coals into Canada during the First World War.

The subsidies granted to the railroads during the Great Depression were also structured to induce u t i l iza t ion of Western Canadian coals farther

eastward.Environmental stud-

ies were conducted be-tween 1918 and 1924 on the feasibility of semi-manufacturing the lignite into industrial briquettes. A plant was established by the government at Bi-enfait, and subsequently turned over to a private company to operate.

The Sunl igh t Coal Company opened the first extensive stripping pit in 1927. The project was not considered economically viable after the water-sat-urated coal froze during transport in the railway cars thereby becoming unmarketable.

Underground extrac-tion techniques dominat-ed the commercial mining operations prior to the

Second World War. Many of the underground drift and shaft mines in the Es-tevan coalfields extended over an entire legal sub-division (40 acres) and some enveloped a quarter section or larger.

T h e T r u a x - T r a e r Company introduced strip mining in 1930 and pro-vided severe competition to the established compa-nies using more extensive conventional underground techniques. The rapid ex-pansion of inexpensive tonnage during the 1930’s reduced delivered cost to the point where large industrial users as far east as the head-of-the-lakes district in Ontario burned Saskatchewan lignite.

There were approxi-mately 100 active mines

in the province by the close of the war in 1945. Most of these were small operations with carts to transport the coal to local markets.

O n l y 1 3 m i n e s shipped coal greater dis-tances via railroad. All these were in the Estevan coalfield, in the vicin-ity of Estevan, Bienfait, Shand and Pinto.

The gradual conver-sion to strip mining dur-ing the decade following the Second World War was widespread. Under-ground production virtu-ally ceased by 1955.

The production of the Estevan coalfield in the 1950’s was characterized by the gradual elimina-tion of the smaller un-derground mines and the

dominance of four major operations, three of which were fu l ly engaged in stripping operations.

Relatively inexpen-sive natural gas supplies seriously threatened dis-tant lignite markets. Only the largest mining compa-nies were able to survive the competition.

P roduc t ion du r ing this post-war period was largely controlled by the Western Dominion Coal Mines Ltd., successor to the Traux-Traer Company (60 per cent), Manitoba and Saskatchewan Coal Company (21 per cent), Roche Percee Coal Min-ing Company (10 pe r cent) and the Eastern Col-lieries (nine per cent).

C o m b i n e d a n n u -al production from the

mines exceeded four mil-lion tons.

Production statistics for southern Saskatch-ewan showed a steadily increasing annual ton-nage from 200 tons in 1890 to nearly 4.3 million tonns in 1977. It wasn’t until 1936 that the mines produced more than one million tons of coal. That figure dropped to 960,000 in 1939, but increased to more than a million tons the next year. The com-panies hit the two-million tons mark in 1950, three million in 1971 and four million in 1976.

Today, Sherritt Coal (formerly Prairie Mines & Royyalty Ltd.) is the only company involved in coal mining in the Estevan and Bienfait areas.

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010 Page D-3

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There’s never a dull moment at Sherritt Coal for Brian McKinnon.

In his first full year as general manager for Sherrit t’s local mining operations, McKinnon said the Boundary Dam Mine had a record setting year, producing about 6.5 mil-lion tons of coal in 2009.

“We had an extremely good year,” McKinnon said. “The power plants ran extremely well, and they didn’t have any issues with the coal. We gave them an excellent product, so there were no hiccups in their system. The weather co-operated and the equip-ment co-operated.”

McKinnon forecasts that the mine will produce about 6.3 million tons of coal in 2010, slightly lower than the 2009 production numbers. Still, the com-pany has a number of other projects on the go.

“Always something new going on” at Sherritt – McKinnonLikely the most highly

anticipated project set for completion in 2010 is the activated carbon plant at the Bienfait Mine. The plant is the first of its kind in Canada and one of only a handful in all of North America.

A c t i v a t e d c a r b o n works to remove mercury from the flue gas of coal-fired power plants. With new regulations being im-posed on mercury emis-sions from power plants, activated carbon is likely to be a highly sought after product.

Construction of the plant began in February 2009, and completion was projected for sometime within the first or second quarter of 2010. McKinnon confirmed that the plant should be up and running by mid-June.

“We’re heating up the multi-hearth, we’re tying

in all the different stages … we’re testing all of the different facets of the plant and once we can get the

multi-hearth heated up, we can feed product through and then start to get the ac-tivated carbon out the other

end,” McKinnon said. “So, we’re in the process right now, it’s just when you start something new there

are leaks and different things we have to fix.”

“There are other com-panies [producing acti-vated carbon] in the States, so it’s kind of like the race is on, who can get their plant up and running and who can get their product out on the market,” said McKinnon.

Sherritt also continues to work on land reclama-tion in 2010.

“Reclamation’s ex-tremely important to us. With the way the mining industry is going this year, it has really picked up worldwide. We had quite a bit of equipment on order which we expected to get in at the end of March, beginning of April – it’s been delayed until July or August, so that’s put a little bit of our leveling of the spoil piles behind,” McKinnon said.

Desp i te the heavy

workload, the new GM has settled into his position. When he started in August 2008, a dragline went down for eight months, leaving the company scrambling to get their coal.

By 2009, McKinnon said things straightened out for the company, mak-ing way for an exceptional year.

McKinnon says this year he is more familiar with the ins and outs of the company than ever before.

“Now I know a lot more of the people, a lot more of the processes. We can just concentrate on trying to make things more efficient,” McKinnon said. “It went from when I first got here with the draglines being down, to trying to get this activated carbon plant up. So, there’s always something new go-ing on.”

Environmental stew-ardship and sustainability are important to the mining industry. Environmental practioners are an impor-tant part of the workforce at all mine sites. The Sas-katchewan mining industry directly employs dozens of dedicated environmental professionals at operations throughout the province.

• The Saskatchewan mining industry invests considerable human re-sources and millions of dollars every year in en-vironmental stewardship activities, including the monitoring of environment stations at sites, prevention and mitigation of envi-ronmental impacts, and in decommissioning and reclamation efforts and ongoing research efforts.

• In recognition of the importance of environ-mental management to the industry the Saskatchewan Mining Association annu-ally sponsors environmen-tal engineering scholar-ships at the two Saskatch-ewan universities.

• Environmental stew-ardship is a part of mine planning from conception to production through to reclamation. Mining com-panies incorporate rec-lamation and decommis-sioning plans as part of the environmental impact as-sessment statement that is submitted to Saskatchewan Environment. These plans go through a thorough pub-lic review process before a mine operating license is granted.

• As part of their li-cense to operate, all mines are now required to pro-vide financial assurance to government so that in the event that a mine may get abandoned in the future the funding is in place to reclaim the site.

• All mine sites are governed by a myriad of both federal and provincial regulations including the Canadian Environmental Protection Act, the Fish-eries Act, the Navigable Waters Act , the Metal Mining Efficient Regula-tions, the Species at Risk Act, the Environmental Management and Protec-tion Act, the Spill Control Regulations, the Clean Air Regulations, the Mineral Industry Environmental Protection Regulations, the Hazardous Materials regulations, the Halocar-bon Control Regulations just to mention a few.

• The industry actively participates in research, development and imple-mentation of new tech-nologies to improve com-bustion efficiency, reduce greenhouse gas emissions, increase resource conser-vation and further reduce environmental impact.

• Mining is a tempo-

Protecting environment a big concern for Sask. companiesrary use of the land that only uses 0.1 per cent of available land in the prov-ince (less than the size of Saskatoon).

• All mines have ex-tensive tree planting pro-grams for shelterbelts and wildlife habitat.

• Buffer lands around potash operations are man-aged for sustainable ag-riculture and/or wildlife habitat.

• Saskatchewan’s coal mines are unique, in that they undergo continuous reclamation. The objec-tive is to reclaim annually an area equivalent to that which is disturbed. Mined areas are reclaimed to productive farmland two to three years after pro-duction. Prior to mining, cover soil is salvaged and

then directly replaced on recontoured lands.

• R e v e g e t a t i o n t o minimize wind and water erosion occurs (as soon as practical) following coversoil replacement. Reclaimed lands are re-vegetated to a permanent agronomic forage or native species cover that enhanc-es biodiveristy, provides better wildlife habitat and adds organic matter that promotes carbon seques-tration.

• Mined lands are re-claimed to an acceptable predetermined sustainable multi-land use so that the land can be returned to a productive state as soon as possible. Reclaimed land could be returned to cereal or forage crop, pasture, natural forest, wildlife

habitat , recreation and commercial land uses.

• Water management plans utilized by coal min-ing operations minimize the impact on surface and ground water resources.

• Industry and gov-ernments, through a sub committee of the Canadian Mines Ministers, is look-ing at ways to address the cleanup of orphaned mine sites. The Gunnar and Lorado Mines in northern Saskatchewan are currently in the process of remedia-tion and reclamation.

• On the exploration front, Canada continues to show world leadership as the Prospectors and Developers Association recently released their environmental excellence in explorative initiative

(E3). E3 is an unparalleled online resource of data and environmental manage-ment practices designed to promote and ensure that the highest levels of environmental steward-ship are practised on min-eral exploration projects worldwide. The SMA was one of the supporting orga-nizations of this initiative and is pleased to see that it is now available to all practitioners at no charge.

• The SMA is also a founding participant of

the Saskatchewan Min-eral Exploration Govern-ment Advisory Committee (SMEGAC), an industry-government working group that has developed best management practices for mineral exploration. In May 2008, the work of this group is being rec-ognized for an award of environmental excellence by the Association of Pro-fessional Engineers and Geoscientists of Saskatch-ewan. (www.saskmining.ca/news).

• On the regulatory front, a major milestone was the passing of the provincial government’s Reclaimed Industrial Sites Act in May 2006. The act is expected to come into force this year and form the basis of permanent institutional control over decommiss ioned mine sites on Crown land. A perpetual care fund estab-lished by mine operators and administered by the province will finance long-term monitoring.

Brian McKinnon

Page D-4 THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Powerful business

The mining industry is a critical partner in SaskPower’s

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Saskatchewan coal has long been the base fuel at our

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Over the past 50 years, we have purchased more

than 290 million tonnes of lignite coal in

southeast Saskatchewan.

Today, we’re developing leading-edge carbon capture

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valuable resource. Our goal is a cleaner,

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• Mining is one of the fastest growing industries in Saskatchewan. In the next 10 years, an estimated 18,000 new employees will be needed in the Saskatche-wan mining industry to meet replacement needs as well as fi ll new positions.

• The direct and indirect workforce in Saskatchewan will grow by 42 per cent in the next 10 years.

• In the next 10 years, high-demand occupations in the Saskatchewan mining in-dustry include tradespeople, (millwrights, electricians, heavy-equipment mechan-ics, mechanics, welders, pipefi tters, steam engineers) miners, supervisors, heavy equipment-operators, plant/mill operators, administra-tive services, engineers, technologists (environmen-tal, instrumentation, labora-tory) and geologists.

• In Canada an esti-mated 80,000 people will be needed within the next 10years –with over 120 oc-cupations to choose from.

• Saskatchewan’s min-ing sector provides direct and indirect employment for approximately 25,000 peo-

ple and is the main private sector employer in northern Saskatchewan.

• The average weekly salary of an employee in the mining industry is almost twice that of the average weekly salary of Saskatch-ewan employees in other sectors.

• The mining industry spends over $3 billion an-nually on wages, goods and services.

• The Saskatchewan mining industry is a great employer offering job and career opportunities in a

wide range of areas from exploration through produc-tion and processing to ad-ministration and marketing. All mining companies offer extensive training to their employees.

• Saskatchewan mining is a technological leader with 85 per cent of the work force

using advanced technology. • The mining industry

in Saskatchewan needs more people. Many of the existing employees are projected to retire in the next few years at the same time that the industry is undergoing tre-

mendous growth.Careers in exploration

Career opportunities in the exploration area, con-sidered the research and development of the mining cycle would include:

• Geologists• Geophysicists• General Field Work-

ers• Geological Techni-

cians• Assayers• Engineers• Prospectors• Pilots• Drillers

Exploration activity also generates other career oppor-tunities such as expediting services for food, supplies and offi ce staff.

Careers in developing, producing and marketing

Developing the mines, producing and then market-ing the minerals produce career opportunities in many areas including:

Engineers • Mining • Civil• Electrical• Environmental• Geological• Mechanical• Metallurgical • Chemical

Marketing In 2008, Saskatche-

wan’s mining industry pro-duced a record $9.7 billion of product requiring a vari-ety of marketing and sales specialists.

• Accountants• Investor Relations• Financial Analysts

Technicians• Computer Techni-

cians• Draftspersons• Environment Techni-

cians• Instrument Techni-

cians• Lab Technicians• Metallurgical Techni-

cians• Radiation Techni-

Plenty of interesting careers in mining industrycians

Trades people• Electricians• Carpenters• Welders• Machinists• Millwright• Mechanics • Pipefi tters• Plumbers• Steam Engineers

Operators• Draglines• Drillers• Heavy Equipment• Helpers• Labourers• Mill Operators• Miners• Shovels• Truck Drivers

AdministrationRunning a mine requires

more than engineers, miners, technicians and operators. Someone has to purchase supplies, pay bills, do the hiring and attend to numer-ous essential duties. Careers in mine administration in-clude:

• Administrative As-sistants

• IT Specialists• Human Resources • Lawyers• Public Affairs• Purchasing Agents• Security Guards• Warehouse Personnel Health & Safety

The mining industry is proud of its outstanding safe-

ty and health achievements. It has a lower lost-time acci-dent rate than the provincial average, lower than a num-ber of occupations includ-ing government workers. Saskatchewan mines have often won National Safety Award winners. Careers in this area include:

• First Aid Attendants• Industrial Nurses• Safety Offi cers • Radiation Techni-

ciansThe environment

Environmental steward-ship is important to the min-ing industry. Environmental practitioners are an impor-tant part of the workforce at all mine sites. Each year, the Saskatchewan mining industry devotes consider-able resources and millions of dollars to reduce its envi-ronmental footprint, includ-ing activities such as site monitoring, prevention and mitigation of environmental impacts, decommissioning and reclamation and ongoing research efforts.

• Environmental Tech-nicians

• Biologists/Ecologists• Environmental En-

gineersInterested in

knowing more?www.saskmining.ca www.acareerinmining.ca www.mihr.caThis old drill press was

once used in the mining industry during the 1940’s and ‘50’s. Now it sits idle at the Bienfait museum.

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010 Page D-5

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the contribution mining makes to the community.

• Exploration is the key to sustainability in the min-ing industry — it is often referred to as the “R & D” (Research & Development) of the industry.

• To be a sustainable industry, mining companies need to identify new resources to replace the ore that is mined out.

• The length of time to bring an exploration discovery into production is constantly increasing and currently aver-ages 10 to 20 years.

• Because mineral com-ponents are found in almost all consumer goods, mining will continue to be a dominant industrial sector in our global economy.

• Growth in the econo-mies of many developing countries is causing an in-creasing demand for many metals and minerals.

• Exploration is the search for new economic sources of minerals most of which are now buried deep beneath the surface of the earth.

• Exploration has evolved into a highly sophisticated, multidisciplinary science us-ing principles of geology, physics, chemistry, and even biology to probe deep beneath the earth’s surface.

• Exploration is the high-risk end of the industry as it involves investing large sums of capital for which there is no guaranteed return.

• Exploration requires patience and persistence as fewer than 2 per cent of min-eral showings or initial dis-coveries will actually evolve into mines.

• In Saskatchewan most of the mineral rights are owned by the province and companies or individuals obtain the rights to explore by staking a claim or acquiring a permit or a lease.

• The fi rst stages of ex-ploration typically involve making observations about the rocks or soils on the land surface (geological mapping), and taking samples for various types of chemical analyses. Computer-processed images of the land surface taken from satellites are also widely used to evaluate structures that may provide clues to potential areas of mineralization.

• Later stages may con-sist of measuring the physi-

Exploration is critical to mining industry

The char plant at the Bienfait Mine is a vital part of Sherritt Coal’s local mining operations.

cal, magnetic, or electrical properties of the rocks using high-tech instruments located on the ground or in an aircraft fl ying over the land surface. Again, extensive computer processing and careful scien-tifi c interpretation is needed to fi nd out what lies beneath the surface.

• These early stages of exploration generally have little or no lasting impact on the land.

• Protection of the en-vironment starts right at the beginning of the exploration cycle and as the exploration work becomes more involved the proponents are required to make environmental-impact submissions.

• Right from the first phase of exploration; pro-ponents require a variety of permits before undertaking any activity.

• The most significant disturbances caused by ex-ploration are access roads; these are either retained for future use by local residents, or reclaimed.

• Exploration expendi-tures in Saskatchewan reached a record $474 million in 2008 including $204.4 million for uranium, $73. 2 million for diamonds, $8.9 million for gold, $6.8 million for base metals, and industrial miner-als including potash, clays, coal and rare earth elements totaling $181.7 million.

• In 2009 exploration for industrial minerals, including potash and coal, will overtake both uranium and diamonds to become the focus of min-eral exploration in Saskatch-ewan.

• In the past 3 years, over $1 billion has been invested in mineral exploration in

Saskatchewan, primarily for uranium.

• Saskatchewan ranked No. 1 in Canada in terms of greenfi eld exploration expen-ditures for both 2006 and 2007 per cent compared to sixth place in 2004 (6%).

• The SMA Explora-tion Committee has worked with government regulators to develop 14 Best Manage-ment Practices for Mineral Exploration Activities to assist government and industry in the application and approval process for activities on land administered by Saskatche-wan Environment. This guide provides information to assist in the planning, initiation and completion of a mineral exploration program in a fash-ion that will help minimize environmental impacts and meet relevant legislative re-quirements.

Local mines working on lengthy safety streak

Safety is the number one priority at the Boundary Dam and Bienfait Mines says general manager Brian McKinnon.

Prairie Mines and Royalty Ltd. has a lengthy safety record to show for it. Together, the two southeast Saskatchewan mining locations have gone six-and-a-half years without a lost time injury.

McKinnon says the key to the company’s success in regards to safety is the fact that everyone is kept in the loop.

“We have lots of standard operat-ing practices, we have a good training program, we document everything, and we try to keep everybody in-volved in what’s happening. Every crew meeting starts with safety as the priority and what’s happening. I think it’s a mindset – people want to work safe,” McKinnon said.

I f a l l goes wel l , McKinnon said the company will hit seven

years without an LTI on January 10, 2011.

“Once you start building that record up, people don’t want to break it. They want to continue on. People help each other out – the employees are making sure everyone else is safe,” McKinnon said.

As with any company, one of the challenges for Sherritt is keeping new employees safe. McKinnon said the company has hired about 140 work-ers in the last three years and has relied on the experienced workers to help out.

“We bring new people on and we need help training. So, we rely not only on our safety and training people, but on the employees that have been here for a long time to help train and give the guys advice,” McKinnon said.

McKinnon said a new safety adviser has also been hired to help keep employees safe.

www.estevanmercury.ca

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Page D-6 THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

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Saluting Estevan’sMining Industry

Safe ty i s f i r s t and foremost for a l l mem-bers of the Saskatchewan Mining Association and member companies invest their time and effort in de-veloping and maintaining a positive safety culture at all their operations.

• Saskatchewan mines have an excellent safety record. This record is rec-ognized at the national level, as Saskatchewan mines have been frequent winners of the national J. T. Ryan Safety Awards sponsored by the Canadian Institute of Mining Metal-lurgy and Petroleum and Canada Mine Safety Ap-pliance Company.

• Mining represents one of the safest industries in the province, averaging

Safety comes fi rst in Saskatchewanless than one lost time accident (LTA) for ev-ery 200,000 hours or 100 years worked for the past 16 years.

• Saskatchewan min-ing has some of the lowest Workers’ Compensation Board assessment rates in the province – lower than workers in the health or government sectors; a result of continuing ef-forts to reduce accidents through improved train-ing and safe workplace practices.

• Looking at the fre-quency of home injuries, s tat is t ical ly i t is safer working in the mining industry than around the house.

• The SMA Safe ty Committee is comprised

of dedicated Safety Pro-fessionals from all mine site operations. It meets monthly to share infor-mation pertaining to their sites. Its mandate is:

— To form a network of safety personnel to share information on ac-cidents, dangerous occur-rences, potential hazards and safety product infor-mation to enhance health and safety at mining op-erations.

— The safety commit-tee is the common voice for the mining industry in the establishment of review of acts, regulations and codes which may im-pact the health and safety in the mining industry. The safe ty Commit tee sponsors joint training initiatives which benefit all members, and is ac-tive in promoting health and safety, not only at the mines but also throughout the province

— The safety com-mittee also promotes ex-cellence in mine rescue, emergency response and mine planning. Over 200 emergency response per-sonnel from Saskatchewan mining operations par-

ticipate in various mine rescue, fire fighting and first aid competitions each year. The Emergency Re-sponse/Mine Rescue Skills Competition is held at the conclusion of Saskatch-ewan Mining Week and showcases teams’ profi-ciencies.

• Forty-two years ago, at the Association’s first annual general meeting, one of the key initiatives reported on was working with the Mine Safety In-spection Branch to devel-op an acceptable standard for mine and rescue equip-ment at each mine and for the training of crews.

• The Mine Safety Unit, Occupational Health and Safety Branch of the Minis t ry of Advanced Education, Employment and Labour inspects all mines in the province on a regular basis.

• Saskatchewan mine supervisors are required to hold Department of Labour certification of their knowledge of the occupational health and safety act and regulations, certification in first aid, and certification in super-visory duties in an emer-

gency. No other industry in Saskatchewan has these safety requirements.

• Active occupational health and safety commit-tees are an important part of Saskatchewan mines’ efforts to reduce accidents in the workplace

• Safety training at Saskatchewan mine sites is continuous with work-ers ini t ial ly having an extensive safety training orientation that is rein-forced by ongoing safety programs. All crews have regular safety briefings to ensure that safety is the first criteria considered before any task is under-taken.

• Though rare , in-stances such as the under-ground fire at Esterhazy in January 2006 reinforce the importance and value of the daily effort placed on safety and the training all employees receive. The orderly and professional emergency/mine rescue response showcased Sas-katchewan’s and Canada’s leadership in the area of mine worker health and safety.

• Saskatchewan min-ing companies have up-

wards of 1000 t ra ined emergency response peo-ple, many of whom live in smaller communities throughout the province.

• The Exp lo ra t ion Safety Sub-Commit tee successfully hosted their first Exploration Safety Workshop in May 2009, with over 120 participants from a dozen companies attending.

• Many mining com-panies offer first aid and CPR training to all their employees as well as to their spouses, contrib-uting to the Emergency

Response capabilities of many communities.

• Saskatchewan’s min-ing industry, through the SMA, is actively partici-pating in research projects that will result in safety improvements at mines.

• Saskatchewan’s min-ing industry is a strong supporter of the Saskatch-ewan Safety Council’s “SAFE SASKATCHE-WAN” initiative, and the SMA works with other like-minded safety orga-nizations to promote the culture of safety at the workplace, and at home.

The benefits of Sas-katchewan’s mining indus-try will be in the spotlight this week as the province recognizes Mining Week.

Saskatchewan’s min-ing industry touches prac-tically everyone in the province, and has a major impact on our economy.

This year’s theme of Mining: Investing in Sas-katchewan’s Growth rec-ognizes both the industry as a driving force and the contribution it’s expected to make to our future. The week is also a celebration of the more than 30,500 people employed directly and indirectly in mining and in jobs induced by mining activities.

“Mining is critical to the economic health and wealth of our province,” Energy and Resources Minister Bill Boyd said. “Mining contributes to our overall prosperity and GDP, and it builds com-munities, providing well-paying jobs for people across the province.”

“In the next 10 years the Saskatchewan mining industry will require an additional 18,000 workers, including 4,000 trades-people such as industrial mechanics, electricians and heavy equipment me-chanics as well as over 500 engineers,” Saskatch-ewan Mining Association president Kelvin Dereski said.

Mining is Saskatch-ewan’s third largest in-dustry - an industry that has shown considerable resilience from the global economic slowdown of last year. Value of Sas-katchewan mineral sales was approximate ly $5 billion in 2009.

Mineral exploration activity, which leads to the discovery of new mines and growth of the industry, continues to be strong. Exploration spending is expected to be approxi-mately $355 million this year, and would make 2010 the second best year for exploration and mark an increase from actual expenditures of $275 mil-lion in 2009.

The Fraser Institute’s 2009-10 survey of mining companies ranked Sas-katchewan’s investment climate and resource po-tential sixth best out of 72 jurisdictions across Cana-da and around the world.

This is up from a ninth place ranking in 2008 and 12th place in 2007. Ac-cording to Statistics Can-ada, capital investment in Saskatchewan’s mining industry is expected to reach $2.5 billion in 2010, an increase of almost 10 per cent over 2009.

“Mining cont inues to rebound from an off-year globally in 2009, and investors are looking to Saskatchewan for the diversity of our resourc-es and our strong busi-ness climate,” Boyd said. “Over the next 10 years, the potash industry alone is investing almost $12 billion on Saskatchewan’s existing mine sites. There is also the potential of new potash mines and uranium opera t ions and maybe even a diamond mine that will result in billions more in investments.”

The Saska tchewan Mining Association co-ordinates Mining Week events, and has a variety of activities scheduled throughout the week.

Mining Week

celebrates

investment and

economic growth

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010 Page D-7

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A Salute ToA Salute To Mining Week!Mining Week!

WHAT IS THE ECONOMIC IMPACT OF MINING IN SASKATCHEWAN?

Mining is GREAT for Saskatchewan. It is the province’s third largest industry and a sig-nificant contributor to the provincial economy spending over $3 billion annually on wages, goods and services, and generating over $2 billion annually to the provincial government revenue through royalties and taxes. Mining has been identified as one of the key growth sectors for the Saskatchewan economy.

HOW MANY JOBS DOES SASKATCH-EWAN’S MINING INDUSTRY CREATE?

The mining industry creates direct and indirect employment for over 25,000 people in the province. A large percentage of these people live and work in rural or northern Saskatchewan. The average weekly salary of an employee in the mining industry is almost twice that of the aver-age weekly salary of Saskatchewan residents.

HOW DOES SASKATCHEWAN MIN-ING COMPARE TO THAT IN OTHER PROVINCES?

In 2008, Saskatchewan was Canada’s lead-ing mineral producing jurisdiction with produc-tion valued at over $9.7 Billion. Saskatchewan accounted for 21.5 per cent of Canada’s output in 2008 — an increase of over 7 per cent from 2007.

HOW DOES SASKATCHEWAN MIN-ING RANK INTERNATIONALLY?

Saskatchewan is a prominent player in the global mining picture contributing to Canada being the world’s largest producer of both potash and uranium (the only two mineral commodities for which Canada is the world’s leading producer). Canada produces about

one-third of the world’s potash supply which includes some production from a PCS mine in NB. Saskatchewan is Canada’s only uranium producer accounting for 22 per cent of world production. With extensive reserves of both these commodities Saskatchewan is in a position to capture new market opportunities and will continue to dominate world markets for many years to come.

WHAT IS THE VALUE OF MINERAL SALES IN SASKATCHEWAN?

The total value of mineral sales in 2008 was a record $9.7 billion; doubling the previous record of $4.6 B set in 2007. Escalating potash prices resulted in potash accounting for about 82.5 per cent of this total, and uranium about 15.5 per cent.

WHAT IS THE FUTURE OF MINING IN SASKATCHEWAN?

Mining has a bright future in the province. Not only will we continue to dominate world potash and uranium markets for many years to come but Saskatchewan also has tremendous untapped mineral resource potential - for ex-ample the emerging diamond play east of Prince Albert has the potential to add another world class mining camp to our stable of resources. There is also potential for additional gold and base metal production and for new commodi-ties such as rare earth elements and magnesium and other minerals from brines in the prairie evaporite.

WHAT IS THE ROLE OF MINERAL EXPLORATION IN SASKATCHEWAN MINING?

Exploration is the key to sustainability in the mining industry – it is often referred to as

the research and development of the industry. Given the long lead times between an initial discovery and mining (10 – 20 years on aver-age) it is critical to maintain active exploration programs in the province. In the past three years, over $1 Billion has been invested in mineral exploration in Saskatchewan, primarily for uranium. Exploration expenditures in 2008 reached a new record of $474 Million - ten times the increase of the level of expenditure seen in 2005. Exploration Expenditures in 2009 were expected to be reduced to approximately $244, reflecting the junior mineral sector’s difficulty in raising financing on the equity markets. In 2009 exploration for industrial minerals, includ-ing potash and coal, will overtake both uranium and diamonds to become the focus of mineral exploration in Saskatchewan.

HOW MUCH SASKATCHEWAN LAND IS USED FOR MINING?

Despite its significant economic impact, in total mining only occupies 0.1 per cent of the total landmass of the province, an area smaller than the city of Saskatoon.

HAS MINING BECOME ENVIRON-MENTALLY SENSITIVE AND RESPON-SIBLE?

Environmental stewardship is important to the mining industry and environmental prac-tioners are an important part of the workforce at all mine sites. Each year, the Saskatchewan mining industry devotes considerable resources and millions of dollars to reduce its environ-mental footprint, including activities such as site monitoring, prevention and mitigation of environmental impacts, decommissioning and reclamation and ongoing research efforts. Min-

ing companies must now have an approved rec-lamation plan and financial assurance in place before they are given a license to operate.

HOW DOES MINING AFFECT EACH OF US IN SASKATCHEWAN?

Mining provides an economic foundation for all of Saskatchewan residents – northern, rural and urban. Mining companies in Saskatch-ewan directly contributed almost $2 Billion in revenue to the provincial government in 2008. These revenues support government programs and services such as health care, education and infrastructure development. In 2009, mining companies are forecast to provide over $2Bil-lion in direct revenues accounting for 20 per cent of the Government of Saskatchewan’s total budget revenues.

Globally, the mining companies in Sas-katchewan are feeding and fueling the world. Potash is used as a fertilizer to improve crop quality and quantity to feed the world’s growing population on a decreasing area of arable land, and uranium is providing a source of non-GHG emitting energy to countries all over the world. Closer to home, coal mined from southern Sas-katchewan provides almost 60 per cent of the base power load for Saskatchewan’s electrical energy. Virtually everything around us from computers, jewelry, cars, windows, cellphones, wall board, cosmetics, medical treatments, vitamins, toothpaste all contain components of minerals. There is a saying in the industry … “if it can’t be grown it was probably mined.” And as noted above, - many of the fertilizers that help things grow are mined right here in Saskatchewan. The benefits and products from mining surround us every day.

You have questions? We have answers

Lignite Lady is an old dragline no longer in use.

www.estevanmercury.ca

Page D-8 THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010g

Think of all the things in your daily life that depend on the availability of reliable, stable sources of electricity...like lights, computers, schools and hospitals. Now consider where all that electricity comes from.

The majority of the electricity used in Saskatchewan is generated by coal mined right here in ourprovince. With modern technology coal is a clean source of energy.

Sherritt Coalis proud to celebrateSaskatchewan Mining Week.

www.sherritt.comBienfait MineBoundary Dam MinePoplar River Mine