Saskatchewan welcomes China mining investment

Officials in the mineral-rich Canadian province of Saskatchewan are optimistic that Chinese investors won't be dissuaded by diplomatic tensions between the two nations.

According to Gary Delaney, the chief geologist of Saskatchewan, the government and agencies are ready to provide assistance for Chinese investors looking to enter the high-risk and complex mining industry.

"Over the last 10 years, a number of Chinese companies had invested in minerals projects in Saskatchewan, and some have acquired and set up their own projects," Delaney said. "We work very closely with companies, explaining our investment climate and good practices, and provide good advice on the pathway to follow to be successful."

Delaney spoke to China Daily at a conference of the Prospectors and Developers Association of Canada last week in Toronto.

For Chinese investors and companies, he stressed the importance of building community relations with first nations communities to ensure smooth operations and local support for their projects.

"It is very important that we and our colleagues in the various agencies and government continuously explain the best practices and steps, and we provide very good advice. We had these companies listening to what we say and we are very happy with the results," Delaney said.

Meanwhile, because the government is mindful that the Chinese are foreign investors who may not be familiar with the local environment and the ways things are done in Canada, the province has organized teams of experts to provide professional investment advice and how to approach and operate in the minerals sector.

Delaney assured that because mining exploration is complex and high risk, consultations would continue, and technical expertise made available to them.

"We advise Chinese investors to hire local experts and consultants to help them succeed so as to determine where and how big the mineral deposits are," he said, adding that companies that choose to heed the advice would tend to have more success.

Western Potash Corp's Milestone project is the only potash project that has advanced to construction stage among the Chinese-invested mining projects in Saskatchewan. The company has attached significant importance to the localization concept to bring the project to construction within only three years.

"We attribute the progress to the localization measures of environment-friendly priority by applying innovative technology, expanding local employment and accommodating community needs," said Xue Wenye, chairman of Western Potash. "Building the good relations with local governments and community is truly important to ensure our project's success and let the local residents benefit from it.

Asked if Saskatchewan would continue to welcome Chinese investments amid the current diplomatic tensions between the two countries, Delaney said the province would definitely continue to embrace Chinese investments.

"If you talk to Chinese companies already in the province, they would tell you our government welcomes all reasonable and responsible investors in our minerals and gas projects," said Delaney. "I think most Chinese companies are very happy with their interactions with us. We will continue to open up to Chinese investors."

Saskatchewan has more than 25 operating mines, which produce potash, uranium, coal, gold, salt, meta-kaolin, silica sand, sodium sulphate, clay and bentonite. The prairie province also has a wealth of resources including diamonds, platinum and palladium, rare earth elements, copper, zinc, and nickel.

Contact the writer at renali@chinadailyusa.com