Location
Saskatchewan, Canada
Operator
Commodity
Potash
| Asset Profile | |
|---|---|
| 2024 Royalty Revenue | C$4.3 million |
| Annual Production Capacity | 7.8 million tonnes per annum |
| Estimated Mine Life | 73 years (Proven and probable reserves at Dec 31 2019) |
The Esterhazy K1 and K2 mines were located on existing CNR sidings at Yarbo and Gerald, approximately 85 km southeast of Yorkton, Saskatchewan. Prior to the completion of the K3 Project in 2022, the K1 and K2 mines were decomissioned. The K3 project became Saskatchewan's first new underground potash mine in over a half-century, and the largest in the world. An independent audit done in 2023 verified a total nameplate capacity of 7.8 million tonnes, versus its previous annual nameplate capacity of 6.3 million tonnes. In 2024, Mosaic announced the Esterhazy Hydrofloat project which will enable additional production of 400 thousand tonnes of MOP. It is on track to complete by mid-year 2025 and expected ramp-up by the end of 2025.
Royalty rates for all the potash assets are set by the province of Saskatchewan (3% in 2019), and are the function of the number of tonnes owned under unitization agreements × price × indexed multiplier. See The Subsurface Mineral Royalty Regulations, 2017
