BHP Billiton is one of the largest mining companies in the world, and it is undertaking initial exploration for a potential potash mine south of Yorkton.
Monday, John McElroy, manager of exploration with the company gave a brief overview of planned activity in the Yorkton region to Yorkton Council at its regular meeting.
"Basically we're a global resource company," he explained, adding they have about 100 operations in 25 countries.
The international firm is now looking at entering the potash market, and has established an office in Saskatoon to oversee exploration work on a number of leases in the province.
"We've been here in Saskatchewan since 2006," said McElroy, adding the company holds exploration leases on 14,000 square kilometres.
The company has already done extensive exploration of land leases in the Jansen area, and is now turning its attention to leases held between Yorkton and Melville extending from Willowbrook to Esterhazy. He added the area being tested first lies just south of the area Agrium has explored the past three years.
McElroy said BHP is undertaking "a multi-phase exploration program" in the area which will extend over several years if the results of each phase are encouraging.
The initial work, beginning immediately is 2D seismic work carried out on a roughly two-mile grid.
"It gives us a quick look at what's there," said McElroy. " It's our first look."
The work will see a crew of 60 based in Yorkton through until fall.
"If results meet expectations," said McElroy, 3D seismic work will follow with plans calling for that work to start in November. That phase would require a crew of more than 120, with work going through until March 2011.
The next phase, through much of 2011 would see drilling rigs brought in for test holes."and then probably more seismic," said McElroy.
The entire exploration process would extend into 2012.
McElroy said the company's interest in potash has been spurred by the size of the market which saw global demand hit 53 million metric tonnes in 2008.
"We're really looking to build a global potash business," he said.
Councillor Bob Maloney wanted to know if the demand for potash would warrant a second mine since BHP appears on its way to a development near Jansen.
"These projects are very long term projects," said McElroy, noting Jansen would not hit production until 2015, and not fill production until five to 10 years after that, so the expectation is more demand to grow over that time.
Mayor James Wilson wanted to know what the city might need to do to prepare for a mine.
"At this stage it's very early in the project," said McElroy, noting at present nothing is required of the city.As for the impact of a mine, he said there will be lots of lead time for the city to develop to meet population growth, he said.
