Saskatchewan potash developer clears final key permit ahead of 2027 startup

Story by Dylan Sikes - AllPennyStocks.com News
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Saskatchewan Potash Developer Clears Final Key Permit Ahead of 2027 Startup

Potash has drawn steady attention from policymakers as North American governments look to secure supplies of the minerals behind food production. Canada is the world’s largest potash producer, and Saskatchewan accounts for the bulk of that output, which makes the province the main focus of new development in the fertilizer sector.

Shares of Buffalo Potash Corporation (TSX-V: BUFF) (OTCQB: BLPTF) are higher Friday after the company received approval from the Saskatchewan Ministry of Environment to construct and operate the Initial Production Module (IPM) at its Disley Project. The company described the approval as the final key regulatory approval it needs to complete construction and begin operating the IPM.

The approval, Permit No. PC26-153, follows the ministry’s Sept. 17 determination that the IPM is not a “development” requiring an Environmental Impact Assessment. It covers the surface works for the remaining phases of the IPM plan, including pipelines, brine and water storage tanks, processing equipment, electrical infrastructure, modular buildings and roads. Conditions include ministry approval of a groundwater monitoring plan, compliance with air quality requirements before processing equipment operates, and financial assurance acceptable to the ministry. The approval runs to April 30, 2027, with provision for extension, and applies only to the IPM.

The IPM is designed to produce 125,000 tonnes per year of soluble-grade potash and is the first of three planned solution mining facilities at Disley, which sits about 50 kilometers northwest of Regina next to the K+S Bethune and Mosaic Belle Plaine solution mines. Buffalo’s May 2026 preliminary economic assessment outlined a full build-out of up to 1,125,000 tonnes per year, with an after-tax net present value of US$1.1 billion at an 8% discount rate and an internal rate of return of 30%. The company noted that its IPM production decision is not based on a feasibility study with mineral reserves, which historically carries a higher risk of economic and technical failure.

Buffalo is developing Disley with its patented Horizontal Line-Drive method. Source and disposal wells and horizontal drilling for the IPM are complete, and site development is in progress. The next phase, brine circulation, is designed to establish communication along a clay seam between injector and producer wells, then develop the mining plane that will feed the IPM processing facility.

President and Chief Operating Officer Quinton Hardage said the approval allows the company to advance surface construction in parallel with brine circulation preparations.

“Our team, together with our contractors and consultants, has shown disciplined execution in keeping this project on schedule, and we continue to target first production in Q1 2027,” Hardage said.

Shares of BUFF are up 3.9% to C$0.81, while shares of BLPTF are flat at $0.5536.

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