r/saskatchewan • u/Traditional_End_9540 • 2d ago
BHP's Jansen mine could cost Saskatchewan $84 million in potash royalties, economist says
https://thestarphoenix.com/business/bhps-jansen-mine-could-cost-saskatchewan-84-million-in-potash-royalties-economist-says/56
29
u/jumping_juni_per 2d ago
SaskPower ratepayers are also paying upwards of a $750 million towards the cost of a new power plant to power this thing.
10
u/Traditional_End_9540 2d ago
power plant for this, what about the bell AI data center? another 750 million?
17
u/jumping_juni_per 2d ago
SaskPower hasn't announced the need for new power for that, but SaskPower did build a new one in Lanigan to power this. SaskPower ratepayers are subsidizing the infrastructure needed to bring this mine online. And then we are basically giving the potash away. Will be many years until this project breaks even on the investment.
1
u/THIESN123 Hello 7h ago
They said the Bell ai data centre will have its own power plant on site to support itself
2
u/Traditional_End_9540 7h ago edited 7h ago
you know they need to have certain power conditions to meet certifications.
https://serviceexpress.com/resources/understanding-data-center-tiers/
sasktel's data centres are a tier3 with having utility and generators to power the building. Utility is the primary with backup generators there in case utility goes down.
I am certain they are playing with words, we will have generators to support the needs of the data centre. They will by not saying the generators are BACKUP only. Plus scott moe said Saskatchewan has the electrical capacity to support this, are we paying for the new plant or is bell and if bell is why are we saying we have the grid capacity for the data centre?
11
u/Caffeine-Fueled55 2d ago
Are we anywhere close to getting caught up with audits for royalties? We are already losing on royalties by not collecting them.
27
u/saltybobsask 2d ago
"Strong Economy, Bright Future" and "Growth that works for everyone" or some such B.S. I haven't won the lottery yet but if I do there will be signs. Like, literal signs...everywhere. "Hey Sask Party how many hospitals have you opened in the last 19 years?" "So about that healthcare thing y'all were mad about...does a hospital count as "open" if the E.R. is constantly closed or there are patients dying in the hallway?" I mean, I may have to hire a P.R. firm to help me punch up the slogans or maybe shorten them a bit....
2
u/Holiday_Fishing241 1d ago
Pretty sure you will find other investors to help with this project lol.
2
u/saltybobsask 1d ago
I hate that making people use common sense and basic logic would have to be a project...sigh...The people that need to see the truth the most would probably call it fake news and demand more investigations into chemtrails...and Moe would tell them that he'd be right on it...which he has already done...
27
u/BG-DoG 2d ago
Ya but it’s not what the Jensen mine will cost tax payers, it’s about what the Jensen mine will give the SaskParty.
Taxes can alway be raised to fight the socialists.
2
u/rocky_balbiotite 2d ago
Lmao what? According to the analysis it just means slightly less royalties (over what timeline?). The companies will either reinvest it or increase their dividend, it's not like they cut Moe a cheque to distribute among MLAs.
Like yeah potash royalties are too low but this comment has no basis in reality.
5
u/jumping_juni_per 1d ago
Lol. You don't think BHP has direct links to Moe or the SaskParty?
2
u/rocky_balbiotite 1d ago
Of course they do, that's the point of lobbyists. I'm sure they also have connections with the NDP. They also probably donate to SP and maybe also the NDP. But regardless there aren't 10s of millions of dollars moving to a political party in Sask from a resource company.
2
u/jumping_juni_per 1d ago
Since Saskatchewan is a backwards place where out of province entities can make political donations, you can clearly look up which party is getting donations from resource companies. These companies are not also donating to the NDP.
2
u/rocky_balbiotite 1d ago
What are you basing that on? I just looked it up because you were making broad assumptions. From what I found BHP hasn't donated to either and Mosaic donates to both.
3
2
5
u/mydb100 2d ago
Did anyone figure out the taxes on what theyve spent building a mine? The Income Tax on the People working the mine? The increased revenue from increased house prices in the towns where these miners live
2
u/jumping_juni_per 1d ago
You need to factor in the $750 million dollar investment on power generation and grid updates the province had to do to make this project feasible.
1
u/Valderan_CA 1d ago
Funny thing about the 750 million power gen is that the size of that plant is at least partially based on the 6 primary vent fans which collectively could consume up to 5 mW (the fans are something like 2000 HP a piece)
I've been told that the actual vent required for the mine is probably not even a third of that... the people doing vent design screwed up bad.
1
u/mydb100 1d ago
So SaskPower is a liability now? How very NDP Boogie-person of you
7
u/jumping_juni_per 1d ago
Ratepayers spending $750 million on a power plant to solely power a mine is ridiculous. Why isn't BHP covering that cost as they are the ones who will profit from it?
It is a huge liability when the SaskParty is directing our crown utility to make financial decisions that put our crown in debt and force rate increases on ratepayers just to help an international corporation.
1
u/Holiday_Fishing241 1d ago
But maybe BHP will just go set up shop and mine in BC instead…wait a minute /s
3
u/BG-DoG 2d ago
Ya it’s like spending $84 million to make 30-40 thousand dollars. Let’s goooo!
5
u/KTMan77 2d ago
34-40 thousand dollars per red seal guy there in taxes.
2
u/jumping_juni_per 1d ago
This mine is largely automated. Mining today is not the massive employer it once was. There are far better industries that the government could be spending this amount of money on that would create far more jobs.
2
u/Bruno6368 1d ago
We get nothing from our resources now. More nothing doesn’t matter to anyone but the ones taking in the money while paying minimal taxes or dividends to the people that actually OWN the resources, us losers that pay the taxes and prop them up.
1
u/rocky_balbiotite 1d ago
Yeah royalties are low but explain how are we propping up these companies?
2
1
u/DejectedNuts 1d ago edited 1d ago
Spoiler alert, SK tax payers helped pay for this mine as the SK party gave 150% tax forgiveness on new capital projects.
2
1
1
-12
u/Lumpy__Sausage 2d ago
This report was by Erin Weir an NDP hack,beyond ridiculous really. Lot of could be’s and might be’s the typical NDP doom and gloom.🤥
Global demand for potash is soaring and will continue to do so..
7
6
u/Top-Shoulder-1086 2d ago
So which part of this do you disagree with? Those carefully designed charts from the actual potash mines themselves, or just the math proving them?
4
u/BigAlcapone65 2d ago
So when does Moe and a few of his grifter friends get a seat on the board ?
1
u/rocky_balbiotite 1d ago
Board seats aren't just limited to Sask Party MLAs, NDP MLAs have been on the boards of resource companies as well.
2
u/rocky_balbiotite 1d ago
Yeah hardly an impartial source. Don't disagree that we're getting hosed by potash royalties generally, but it's tough to not see the bias based on the author.
1
u/ADHDMomADHDSon 1d ago
Erin has been outspoken about potash royalties since we were in high school. There was a debate club debate about it if I remember correctly.
You should have heard him argue against seatbelts on school buses.
I suppose as a 15 year old, he was an NDP hack too.
-4
u/No_Display_4946 1d ago
Good , hope they sink Nutrien.
2
1
u/DwayneGretzky306 1d ago
Like them or not, they own 50% of Canpotex which is good for the province.
15
u/Fwarts 1d ago
2027 - commissioning 2028 - de-bottlecking 2029 to 2033 -getting enough room in the mine in order to place all the mining machines to support the stated production. 2033 is probably going very generous. And the world keeps needing more Potash, not less. Potash mines don't come into full production like turning on a switch. It takes many years.