Sask potash give -away !!!

[rastafarian]

So sask is 38 billion in debt and education and health is underfunded.
But we only charge 3 % royalty ?? And oh if you expand you get a 3 year royalty holiday.
No ****en wonder we have a 38 billion debt.

[LEP]

Your beloved NDP put the royalty and royalty credit in place originally. They must have thought it was a good idea.

[rastafarian]

Your beloved NDP put the royalty and royalty credit in place originally. They must have thought it was a good idea.

They Might have but they havent been in power since 2007.
How about you rent me your land ? I keep 97 % and you get 3%
Oh and if I expand I get a 3 year rental holiday.

[rodd]

3% without having to do anything. Sounds like fair number to me. Sask Party knows that any higher than that will stifle expansion. Better to sell 10 million tonne at 3% than 5 million tonnes at 5%. Also remember province benefits from construction costs, taxes on high wages in the sector. Taxes on company profits, etc.

[rastafarian]

Your beloved NDP put the royalty and royalty credit in place originally. They must have thought it was a good idea.

Sept 2022 Sask Govt installs 3 year Royalty Holiday on mine expansions.

[chuckChuck]

Lesson: don't let Scott Moe and the Sask party negotiate anything as they cave easily!

Freehold oil and gas royalties go for 15-18% and the oil companies keep drilling on free hold land.

Saskatchewan has 1/3 of the worlds potash so they have no choice but the mine here in a stable and secure environment.



Saskatchewan’s Forgone Potash Windfall: Collecting a Fair Public Return

The price of potash doubled in 2022, adding $10 billion to the value of Saskatchewan's pink gold. But the provincial government collected only a quarter of this windfall. This policy paper highlights the need to improve royalties and taxes to ensure a fair return for the people of Saskatchewan.
By Erin Weir, Former MP and Consulting Economist, Silo Strategy Dec 6, 2023

Introduction

Saskatchewan has one-third of the world’s potash. This fertilizer’s price doubled in 2022, creating windfall profits of $10 billion.
Although the Potash Corporation of Saskatchewan (PCS) was privatized in 1989,¹ the potash itself – like any other mineral – still belongs to the province. For more than a decade, economists including yours truly,² Jack Mintz,³ Jack Warnock,⁴ John Burton,⁵ and Jim Marshall⁶ pointed out that flawed royalties and taxes under successive governments have failed to capture the value of this resource.

Last year’s windfall highlights the need to collect a fair return for the people of Saskatchewan, who own the resource, from the mining companies that extract it. Although potash prices moderated this year, the value sold in 2023 already exceeds 2021 and every previous year.⁷

Normally, the owners of a commodity would receive most of the benefit from a relative increase in its price. Of last year’s $10-billion potash windfall, the Saskatchewan government collected only one-quarter on behalf of resource owners, the federal government collected one-tenth, and the mining companies kept two-thirds after tax.

The Ukraine war dramatically increased demand and prices for Saskatchewan potash. Facing economic sanctions, Russia and Belarus slashed their combined potash production from one-third of global output in 2021 to an estimated one-fifth in 2022.⁸
While Saskatchewan mined the same volume of potash in both years,⁹ the value of those sales leapt from $7.6 billion in 2021 - already above any prior year - to $18.0 billion in 2022.¹⁰ An extra $10.4 billion arose not from additional production, investment or risk-taking by mining companies but from international events beyond their control.
This sum is enormous for Saskatchewan, enough to pay off the provincial General Revenue Fund’s entire operating debt.¹¹ Ten billion amounts to $8,500 for every Saskatchewan resident,¹² seventeen times the value of the $500 Affordability Tax Credit cheques the provincial government sent only to adult tax-filers.

The potash windfall could have been distributed to Saskatchewan people through cash transfers or tax cuts, used to pay off debt, saved for future generations, or invested in provincial infrastructure and services such as healthcare, education and housing. To fund these worthy goals, the Government of Saskatchewan would have needed to collect much of the ten billion on behalf of resource owners.

The provincial Public Accounts, reported by fiscal year, indicate that potash revenues nearly doubled from $1.3 billion in 2021-22 to $2.4 billion in 2022-23 - an additional $1.1 billion from Crown royalties and the potash production tax. Although resource surcharge revenues are not broken down by commodity, the flat 3% surcharge on ten billion of incremental potash sales would have added $0.3 billion.

Therefore, Saskatchewan’s royalty and tax system collected $1.4 billion of the potash windfall. It left the lion’s share in mining company coffers, which contributed to temporarily higher share prices, continuing dividend increases and higher corporate tax payments.

Download the JSGS Policy Paper ([url]https://www.schoolofpublicpolicy.sk.ca/documents/research/policy-briefs/jsgs-policypaper-potash.pdf[/url])
Download the Discussion Questions ([url]https://www.schoolofpublicpolicy.sk.ca/documents/research/policy-briefs/jsgs-policypaper-potash-windfall-ppt.pdf)[/url]

[fjlip]

Here we go...Sask Potash Corp.... New Dumb Pricks

[chuckChuck]

Only dumb pricks give away their resources for less than they are worth.

Freehold oil and gas gets 15-18 % for the owner.

Potash gets 3% and doesn't rise when the price of potash goes up.

[blackpowder]

Chuck sounds like he's drilled freehold with his money. NOT.

Potash at 3% sounds like a Sask problem.

[blackpowder]

Tell me.
What kind of pricks shut down over $150B in real projects in just 5 years?
There's "no business case" for oil because of government in the first place.