The Progressive Conservative Party of Saskatchewan says a Chinese-based potash company should not be able to buy farmland while a review of ownership legislation is underway.
Yancoal received an exemption from the Farm Land Security Board in February 2014 to buy up to 60,000 acres in the rural municipalities of Longlaketon, Cupar, Huron, Eyebrow and Mount Hope.
The exemption expires Dec. 31, 2016, if the company hasn’t obtained the necessary permits to build a mine.
Yancoal is owned by Yanzhou Coal, which is headquartered in Jining City, Shandong.
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PC leader Rick Swenson said in a news release that the company is being allowed to buy land even though it has no operating license, environmental approvals, or water license and has had little public consultation.
Farm families are being approached to sign sale agreements without adequate information, the PCs say.
“Sixty thousand acres of Saskatchewan farmland owned by the Chinese government should be the concern of every citizen in the province,” Swenson said.
“The PC party is demanding this type of FLSB exemption be part of any public review of land ownership so that Saskatchewan farm families are treated fairly and have all the pertinent information at their disposal before being asked to sell their land to resource companies.”
He said a moratorium should be placed on any further land purchases until the review is complete.
The review, including online consultation, was announced April 13 and is expected to be complete by the end of summer.
The government says companies can’t develop mines without owning surface land, and they are allowed to obtain lots of land so they can determine the best site.
“Each exemption contains conditions that require the company to choose a mine site and to start the construction process within a certain time frame,” said a government statement.
“Once the mine site is determined, the exemption will also require the surplus lands to be disposed.”
Yancoal will have until Dec. 31, 2018, to dispose of surplus land.
The proposed $3 billion solution mine is still at the early stages.
According to information presented at recent open houses in Southey and Strasbourg, the company holds crown mineral land for 19 potash permit areas totalling more than 1.3 million acres, or 12 percent of the province’s total potash dispositions.
The Southey Project, about 60 kilometres north of Regina, would be located west of Highway 6 and north of grid 731.
Production is estimated at 2.8 million tonnes a year for 65 to 100 years.
A feasibility study is underway, and the company said it hopes to submit an environmental impact statement by July.
Construction would take place from 2016-19 and operations would begin in 2020.
Contact karen.briere@producer.com
