The provincial government has amended The Potash Production Tax Regulations, which the government says will improve opportunities in the potash sector, particularly for junior producers, around innovation and research and development.
The regulations will offer incentive tax credits of 40 per cent of eligible expenditures for qualified R&D projects and approved market development programs. The amendments will allow companies to take full advantage of the credits by removing expiry dates and enhancing eligibility requirements.
Energy and Resources Minister Bronwyn Eyre says, “These changes will promote the expansion of Saskatchewan’s potash sector and ensure that our province remains the preferred jurisdiction in which to pilot innovative technologies.”

Qualified R&D projects must demonstrate improved production efficiency, mitigate environmental impacts, reduce physical risks to employees and mine operations, or develop new and improved potash products. Companies must develop new markets or expand existing ones to be eligible for market development credits.
Gensource Potash Corp President and CEO Mike Ferguson says, “Gensource welcomes the amendments to the regulations and look forward to providing long-term economic benefit to the Saskatchewan community while demonstrating real-world ESG leadership.”

The Saskatchewan potash sector accounts for approximately 30 per cent of world production and directly employs approximately 5,000 people. Full-year potash sales for 2019 reached 12.3 million tonnes-the second highest on record-with sales expected to reach a record of nearly 14 million tonnes in 2020.