NEWS FROM THE FIELD : MINING

MJ power project in jeopardy

Discovermoosejaw.com– The Ministry of Energy and Environment has indicated the province will be pumping the brakes on a new natural gas plant in the city of Moose Jaw, saying new federal regulations are the cause.

The final regulations for the carbon tax calculations will include natural gas, which was the provincial government’s first choice as it transitions out of coal.

SaskPower CEO Mike Marsh said that the new regulations will create costs that put the natural gas plant in jeopardy.

“We’re going to have to go back and look at those regulations and look at what it actually means for future decisions including, for example, Moose Jaw,” said Energy and Environment Minister Dustin Duncan.
The Chinook plant that was recently built in Swift Current will be fine because it will be online before the new regulations take effect.

Government announces investment in bioenergy

MeadowLakeNow – The federal government has announced it will be investing $52.5 million to replace the beehive burner with a bioenergy centre at the NorSask mill in Meadow Lake.

The Meadow Lake Tribal Council Bioenergy Centre will be the first of its kind in Saskatchewan and is expected to create enough green energy to power 5,000 homes. The plant creates energy by using the same sawmill waste that is currently burned in the beehive burner.

The bioenergy centre will give Meadow Lake and Flying Dust a significant economic boost and will create new job opportunities.

The project is expected to decrease greenhouse gas emissions by more than a million tonnes over 25 years. It will also improve air quality for residents by reducing smoke and other harmful matter in the air.

Robots teach kids science

CBC Saskatchewan – Digital literacy — via coding and building robots — is the name of the game for a new program coming to northern Saskatchewan.

The goal of RoboX is “to increase awareness of science, technology, engineering and mathematics,” according to Innovation Saskatchewan, which developed the program.

“Children exposed to those subjects at the elementary and high school levels are more likely to continue studying them after graduating,” said the provincial government agency, which focuses on implementing innovation priorities.

There are two parts to the program: helping teachers learn engaging ways to develop robotics and coding skills with their students and hosting hands-on workshops that give students a chance to build and program their own robots.

The program was developed in partnership with the Saskatchewan Science Centre and Saskatoon Industry-Education Council and was piloted with the Northern Lights School Division and the Lac La Ronge Indian Band.

The Industry Education Council trained more than 28 teachers from 10 communities in northern Saskatchewan to incorporate robotics and coding into their classwork.

The science centre’s outreach team has also hosted student engagement workshops at schools in those 10 communities.

GPS device boosts mine safety

Regina Leader-Post – Dr. Terry Peckham’s wireless positioning device is small, but he hopes it will make a big difference in the potash mining industry.

The device is similar to a GPS and can track workers and vehicles in underground potash mines.
“Ideally it will be small enough that … we’ll be able to attach it to personnel,” said Peckham.
The technology is being developed to improve mine safety and productivity.

“You’ll be able to know the person is in very close proximity to equipment,” he said. “Generally, within centimetres is what we’re hoping for.”

Peckham said the device was inspired by technology already in use in open-pit mines.
He is aware of projects in Germany and Australia similar to this one but believes this is the first in Canada.

Al Shpyth, executive director of the International Minerals Innovation Institute (IMII), which represents companies in the mining industry, said the technology is good for the scientific community as a whole. He said mine safety is a major concern for IMII, which is why this project fits well.

Synchrotron research battles rust

Saskatoon StarPhoenix – University of Saskatchewan PhD student Arthur Situm has developed a new non-invasive technique to study the rusting of steel, research that may help with the safety of potash mining and construction of buildings, roads and bridges.

At the Canadian Light Source (CLS) synchrotron, Situm has been studying how the protective coatings of rebars — the steel reinforcing bars used to strengthen concrete — withstand rusting (corrosion). He did his research with the potash mining industry especially in mind.

Salt from potash mining seeps through the porous concrete and may cause rebar to rust faster, which could require more frequent replacements.

Unlike other methods used to study corrosion, Situm’s new synchrotron technique, which stems from a combination of X-rays, a microscope and the CLS particle accelerator, shows how effective the coatings are without removing them from the rebars. Normally, coating removal damages samples by making them unusable for future testing and may interfere with the corrosion of the coating itself.

Situm has simulated different conditions for multiple types of protective coatings in the lab to understand how the materials and surface chemicals can respond. His results show that a well-known and more expensive coating called “fusion-bonded epoxy” can withstand corrosion better than other types of coatings tested.

Situm plans to extend the applications of his technique to study the stability of the ceramics used to store nuclear waste, using a simulated nuclear fuel.

New nuke funding

Saskatoon StarPhoenix – The provincial government’s new five-year funding agreement of $11.6 million for the University of Saskatchewan’s nuclear research institution will help attract private companies and researchers to Saskatchewan, according to Innovation Saskatchewan.

The funding was announced at the opening of the new Innovation Wing of the Saskatchewan Centre for Cyclotron Services (SCCS).

The Sylvia Fedoruk Canadian Centre for Nuclear Innovation is funded by an agreement with Innovation Saskatchewan. The new wing supports the advancement of technology for nuclear imaging and therapy in plants, animals and humans.

This could allow the Fedoruk Centre, an independent, non-profit corporation owned by the university, to start generating its own revenue.

The technologies in the new wing will give researchers the ability to develop innovative procedures that could achieve widespread use in the health care field.

Its imaging research has the potential to improve the detection and treatment of cancers and other diseases through targeted diagnosis and therapy. This is done by connecting a radio-emitting isotope to a molecule to hunt down affected tissues. The radioactive isotope would concentrate on the tissue and cause it to glow.

Star Diamond Corp. to start trenching operations

Saskatchewan Mining Report – Size matters. In diamond mining it matters a lot and the folks at Star Diamond Corp. say their Saskatchewan properties are expected to produce some very large diamonds.
To prove the potential of their Orion South and Star claims, both about 60 kilometres east of Prince Albert, Star Diamond and partner Rio Tinto are aiming to begin trenching operations this spring.
If the results are positive, mine construction could begin within four years, says George Read, P.Geo., a Star Diamond geologist and vice-president of exploration

.
Kimberlite formations, the rock formations that have been found to hold diamonds, beneath the Fort a la Corne forest “have shown the potential for very big diamonds,” Read says.

Read says he’s expecting project-proving trenching operations this spring could recover stones up to 100 carats.

He adds that kimberlite formations in the area have shown a high proportion of type IIa diamonds — the clearest and most prized type of diamonds because they are free of nitrogen impurities.

A plus for Star Diamond, when compared with other Canadian mines, is its location, Read says.
“Those mines are all very isolated and our location is very accessible,” he says. That means it’s easier and therefore less costly to bring in heavy mining equipment, connect to the power grid and recruit and employ some 400 to 500 people for eventual open-pit mining operations.

Feds announce $1.3M for Sask. coal communities

Regina Leader-Post – The federal government announced money for Saskatchewan communities facing job losses because of the looming coal phase-out, with nearly $1.3 million going to specific projects based largely in Coronach and Estevan.

Saskatchewan projects focused on business development, retraining for workers and clean energy will get part of a $4.5 million pot from the previously announced Canada Coal Transition Initiative.

Community leaders in Estevan have previously criticized the slow pace of federal funding pledged in response to the government’s Task Force on Just Transition for Canadian Coal Power Workers.
Ottawa is mandating all conventional coal-fired power plants to shut down by 2030. That’s expected to spell the end of coal mines that supply SaskPower facilities near Estevan and Coronach, costing hundreds of jobs and sending costly ripple effects through both communities.

In response to the task force, the federal government’s 2018 budget committed $35 million over five years to the Canada Coal Transition Initiative for skills development and economic diversification to support communities like Estevan and Coronach. Most flowed through Western Economic Diversification.

The city already has an economic development committee that has begun identifying priority sectors to attract to the city, like manufacturing, renewable energy, greenhouses, warehousing and tourism. But the coordinator will be tasked with further assessing the city’s needs in preparation for a strategic plan.
The Town of Coronach stands to receive $320,000 to support its regional transition plan. The town recently posted a tender to seek consultants for that project, which will include an economic and employment impact analysis and a mitigation plan.

Husky fined $3.8M for oil spill

The Canadian Press – Husky Oil Operations Ltd., a subsidiary of Husky Energy, was fined $3.8 million for a pipeline oil leak that fouled a major river, harmed fish and wildlife and tainted the drinking water supply for thousands of people in Saskatchewan.

The spill into the North Saskatchewan River in July 2016 forced the cities of North Battleford, Prince Albert and Melfort to shut off their water intakes for almost two months.

Calgary-based Husky pleaded guilty to three environmental charges: two under federal migratory birds and fisheries legislation and one under a provincial law for releasing a harmful substance.
About 225,000 litres of diluted heavy oil spilled from Husky’s pipeline near Maidstone in west-central Saskatchewan. The company said about 40 per cent made it into the river and more than 90 per cent of the oil was recovered.

Provincial court Judge Lorna Dyck accepted a joint recommendation from lawyers on an amount for the fine.
“Once the leak was discovered, Husky acted quickly and properly,” said the judge. “I believe Husky has learned from this mistake.”

“There’s no doubt it has had a detrimental effect on Husky’s reputation and on the industry as a whole,”’ Rae said. “We have expended a lot of money on the cleanup – over $140 million.”

A victim impact statement filed by three Indigenous communities in the area said the cleanup wasn’t good enough. Chief Wayne Semaganis spoke on behalf of his Little Pine First Nation and for the Sweetgrass and Red Pheasant bands. The cities of North Battleford and Prince Albert also filed victim impact statements.

CCS conference

Regina Leader-Post – Carbon capture and storage (CCS) boosters met for a conference in Estevan and they think the technology isn’t getting the love it deserves in Saskatchewan.

Organized by the International Brotherhood of Boilermakers and Saskatchewan Building Trades, the event at Southeast College attracted three Conservative members of Parliament who were looking for ideas for the party’s upcoming environmental plan.

Most talk has turned to the Shand Power Station, which is being eyed to be outfitted with CCS technology.
A federal coal phase-out means that coal-fired power plants will have to shut down by 2030 unless they’re fitted with CCS, but the province has announced no new CCS projects since Boundary Dam 3, opting for gas power plants and renewables instead.

Corwyn Bruce, P.Eng., an engineer who is vice president of the International CCS Knowledge Centre, said that’s partly because natural gas prices have become so “embarrassingly cheap that it’s tough for CCS-equipped coal plants to compete.”

But he said that’s changing. The knowledge centre has been looking at ways to close the price gap and a study released in November estimated that CCS at Shand would be 67 per cent cheaper per megawatt hour, compared to Boundary Dam 3. The project would “sneak in” just under the billion-dollar mark.
Asked whether CCS-fitted coal power is now roughly competitive with gas, he gave a cautious affirmative.
“If you have a revenue stream to buy the CO2, then the answer is yes,” said Bruce.

He noted that CO2 captured through CCS can be used in the oil industry to help free up hard-to-reach oil. If Shand could sell the roughly two million tonnes of CO2 it could capture annually, then the project could have “a very compelling business case.”

Unfortunately, he noted that the oil downturn means few energy companies are in any position to invest in the enhanced oil recovery techniques that use CO2.

Despite the challenges, many of those at the conference believe that CCS will need to be a part of the planet’s fight against climate change.

Robert Mitchell of the Global CCS Institute noted that there are now 43 CCS projects either in operation or in development around the world. For the world to reach the targets under the Paris Agreement on climate change, he thinks 94 Shand-sized units will have to be equipped with the technology — every year — until 2040.

Saskatchewan June land sale

Pipeline News – The latest public offering of Crown petroleum and natural gas rights generated more than $6 million in revenue for the province of Saskatchewan, bringing the current fiscal year’s total to approximately $8 million for the two sales thus far.

There were 31 leases acquired in the June offering, totalling 3,887.329 hectares. The highest offering was $10,111 per hectare for a 32.203-hectare parcel, acquired by Synergy Land Services Ltd.
This parcel is located east of Lampman and has the potential for oil in the Midale Beds and Frobisher Beds of the Madison Group.

The average price per hectare for the June offering was $1,654, the highest per hectare rate for an offering since August 2014.

Six leases posted north of St. Walburg in the Lloydminster area were acquired for a total of $2,881,280. These parcels are prospective for heavy oil.

Two leases in the Kindersley area consisting of 648.026 hectares were acquired for $1,418,165 and are prospective for oil.

The scheduled date for the next public offering will be August 13.

Saskatchewan to spend $700m upgrading highways

Journal of Commerce – The province of Saskatchewan announced plans to pour $700 million into highway improvements this year. The upgrades will cover roughly 1,000 kilometres of the province’s highways, focusing on safety improvement projects.

Work has started on passing lanes on Highway 2 north of Moose Jaw, two sets between Rosetown and Kindersley on Highway 7 and on Highways 9 and 10 near Yorkton will begin this summer.

SaskPower prioritizing maintenance

Global News – If you live in the Regina area, there’s a good chance you’ve noticed what feels like more power outages than usual this year. You’re right, according to SaskPower’s CEO Mike Marsh.
While tabling the Crown corporation’s annual report, Marsh said they will be making major investments in “sustainability infrastructure”, focusing on aging infrastructure.

“We’re at the end of life for a lot of this equipment. That’s why it needs more investment. You don’t spend money on equipment that’s not failing 20 years ago. Now that equipment is 20 years older and we’re reaching a period of age where we need to continually invest going forward,” Marsh said.

Going forward, SaskPower plans on spending around $830 million annually on capital projects. Of that, around $400 million is set aside for rehabilitating infrastructure that’s 50-70 years old.
Marsh said sustainability work will take a long time, stretching across the province. This year, Regina has emerged as a problem area and will be treated as a priority.

The report shows SaskPower missed its outage targets by more than 20 per cent.
SaskPower’s other infrastructure plans include continued expansion of renewable generation, finishing the natural gas Chinook Power Station near Swift Current and expanding transmission lines.