Canada’s Gensource to begin constructing low impact potash mine this year

Saskatchewan-based fertiliser company Gensource Potash has revealed that it will start the construction of its Tugaske project later this year.

CEO of the TSXV-listed firm Mike Ferguson told CBC earlier this week that the build would take only two years, due to the smaller scale of the project compared to conventional potash mines.

Gensource aims to create a series of small-scale and sustainable potash production facilities referred to as ‘modules’, with Tugaske the first of those modules to be brought into operation.

Tugaske will initially produce 250,000 tonnes per year of potash, with US-based HELM Fertilizers set to take 100% of the annual production after the two companies agreed an offtake deal.

The mine will have ‘a far smaller environmental footprint than industry norms’ and not just due to its smaller size, Ferguson said. “A typical mine of this type requires 4 kg of water to produce 1 kg of potash, but Tusaske will need only about 1.5 kg. This will be accomplished through new technology and more extensive water recycling.”

Ferguson said the technology will also allow ‘Tugaske to become the first potash mine in Saskatchewan with no tailings ponds’. The lack of tailings and brine ponds also creates an additional synergy in reducing capital and operating costs, the company said in a recent update.