Saskatchewan Incentivizes Growth in Sodium Sulphate Production

Apr 8, 2021

Saskatchewan Mining and Minerals Inc. (SMMI) sees significant long-term economic potential in sodium sulphate production and, if Saskatchewan’s latest budget is any indication, the province’s government shares our view.

The Saskatchewan government released its 2021-2022 budget on April 6, which included two components that will help simplify the sodium sulphate royalty system and provide a modernized investment incentive.

The Sodium Sulphate Royalty incentive is retroactive to April 6, 2020, and includes:

  • Replacement of the scaled production-based royalty with a flat royalty rate of 3 per cent on all sodium sulphate production.
  • A credit of 10 per cent of qualifying capital expenditures that will be eligible for use against current year royalties otherwise payable. This capital investment credit will be for approved capital projects that diversify products or improve operating efficiency.

“Through this incentive, the provincial government has directly recognized the importance of sodium sulphate and sulphate of potash (SOP) to the future of Saskatchewan,” says Rodney McCann, President and CEO of SMMI. “The government’s support for our industry provides invaluable momentum to the SOP project we recently announced. We are proud of our Saskatchewan roots and are committed to contributing to the recovery and growth of this great province.”

In March 2021, SMMI announced plans for a $220 million upgrade at our Chaplin, Saskatchewan, facility to support an increase in sulphate of potash (SOP) fertilizer production. The upgraded facility is expected to be complete by the end of 2023 and will produce an impressive 150,000 metric tonnes of SOP per year.

From our hub in southwest Saskatchewan, SMMI has grown over the past 75 years to become the leading producer of high-quality natural sodium sulphate in the North American market. Over 80 domestic and international customers use SMMI’s sodium sulphate in detergents, pulp and paper, glass, starch, industrial enzymes, water treatment and livestock mineral feed.