Media Release

For Immediate Release

Saskatchewan potash producers disappointed to learn of increases to taxes due to changes to royalty
structure

March 21, 2019 - Regina, SK - Saskatchewan has long been a leader in providing a competitive
environment for the development of potash mining in Saskatchewan. The result has been a world-scale
industry that provides jobs and economic opportunities for Saskatchewan residents and businesses and
that over the past decade has invested over $20 billion in Saskatchewan. The expansion of existing and
development of new mines has been the result of providing that competitive environment over the past
decade.

“Yesterday, the Provincial Government delivered a balanced budget, however we are very disappointed
that it was largely balanced at the expense of Saskatchewan potash producers, which will pay an
additional $117 Million annually in taxes as a result of unilateral changes to the potash royalty
structure.” said Ron Styles, Executive Director of the Saskatchewan Potash Producers Association. These
additional tax increases follow the 2017 increase to the Provincial Sales Tax as well as application of the
PST to exploration and construction expenditures, both changes which have added millions of dollars in
additional cost to the potash industry’s operating costs. The Federal Carbon Tax that begins on April 1st,
2019 will further erode the competitive position of Saskatchewan producers in the world market.

Competing producers in countries like Russia are not facing these cost increases and we risk losing
market share to these countries that don’t offer similar “best-in-class” environment, safety or social
performance as does Saskatchewan potash producers.

“When potash companies make multi-billion dollar, generational investments, as they have been doing
in the past decade, it is critical that they have confidence in a predictable financial framework to make
decisions in,” said Mike Durham, Chair of the Saskatchewan Potash Producers Association. These
unilateral changes to tax structures simply erodes industry confidence that Saskatchewan offers a
predictable and transparent jurisdiction to make additional investment.”

With these changes effective April 1, 2019 – there is no transition time as company budgets are set. This
money will come out of current investments planned for Saskatchewan projects, including jobs and
goods and service purchases.

The Canadian Mining Sector has lost ground to the rest of the world with respect to its competitive
position to the extent that the size of the sector has declined over the past number of years with the net
result being a loss of investment, jobs, economic activity, and government revenues. The same loss of
competitive position will be the result of the 2019 Saskatchewan Provincial Budget.
For further information contact:

Ron Styles
Executive Director
Saskatchewan Potash Producers Association
306 539-4998

Saskatchewan Potash Producers Association(SPPA)

The Saskatchewan Potash Producers Association is an industry association representing the three potash
producers in Saskatchewan, Nutrien, Mosaic, and K+S Potash Canada. Saskatchewan potash producers
presently have ten potash mining facilities under operation in Saskatchewan. These mines provide
thousands of direct and indirect jobs for Saskatchewan residents and are a major driver of economic
activity in Saskatchewan with over 18 million tonnes of potash mined annually.