Released on February 10, 2006
For the second year running, Saskatchewan's potash industry has set a new record for potash production. Potash production for 2005 was 16.6 million tonnes KCI, surpassing last year's record by five per cent.In addition to the record production, the value of potash sales also set a new record at $2.7 billion, a 26 per cent increase over last year. Improved performance was a result of strong sales and record prices.
"The potash industry is an economic keystone in this province," Industry and Resources Minister Eric Cline said. "Prices are up and we've introduced incentives for the industry to expand. The outlook is optimistic for industry and we should expect that this story will only get better."
The government made significant changes to the potash taxation system in 2003 and 2005 to encourage additional potash sales and attract new investment. The tax changes have helped to encourage the potash industry to invest an additional $600 million in the province to expand a number of potash mines.
Potash is the largest mining industry in the province and generates about 6,000 direct and indirect jobs. Saskatchewan accounts for 35 per cent of the world potash production and 45 per cent of the world potash trade. About 95 per cent of potash is used to produce fertilizer, while the other five per cent is used in commercial and industrial products – everything from soap to television tubes.
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For More Information, Contact:
| Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 |