PADCOM receives exclusive exploration rights and $1-million loan for Manitoba’s first potash mine

Potash and Agri Development Corporation of Manitoba Ltd. (PADCOM) awarded more leases

On July 25, 2023, the Government of Manitoba awarded PADCOM the Crown Mineral leases for the North Block at its mine near Russell, Manitoba, adding more than 100 million tonnes of potash to the company’s lease and assets. In addition, the Province also announced a $1.03-million loan for a power line to the mine so it can eliminate reliance on diesel, making it the lowest carbon emission fertilizer producer in the world.

The announcements align with the Manitoba government’s new Critical Minerals Strategy as the potash mine both advances the growth of mineral development and is working to provide economic opportunities for First Nations.

“PADCOM is pleased the Manitoba government has recognized and supported our efforts to develop Manitoba’s potash resource using a low-impact, green sustainable mining technique,” said Daymon Guillas, president, PADCOM, in a press release. “Access to explore more of the potash resource, in partnership with Gambler First Nation, will allow us to evolve from pilot stage to commercial production, including more investment in mining activity and logistics to get Manitoba potash to the world and this will benefit all Manitobans.”

Chief David LeDoux, Gambler First Nation, said he was pleased that First Nations and Indigenous and local communities had input in the critical minerals strategy. “We know we need to work together as true partners to fully realize Manitoba’s potential to meet world demand while respecting the land, our heritage and our people,” he said in press release.

Located in the Hamlet of Harrowby, the mine will initially produce 50,000 to 100,000 tonnes of potash per year, which will increase to 250,000 tonnes per year or more. With the additional leases providing another one million tonnes per year of production, PADCOM expects a net profit of $5 billion.

Read more in our previous news post.

MLT Aikins is pleased to act for PADCOM on all of its legal matters. Winnipeg partner Tom Provost leads the MLT Aikins team of lawyers advising PADCOM on all legal aspects of the company’s operations.

MLT Aikins serves as a trusted legal adviser to a wide variety of mining and agribusiness companies, providing legal advice tailored to the business and practical considerations of clients across Canada. Learn more about our Mining & Natural Resources and Agriculture & Food practice groups.