Western Potash Corp. says it has hammered out a $200 million deal with the City of Regina to pipe treated wastewater to its proposed Milestone mine.
Up to 60,000 cubic metres of treated sewage would be diverted daily from the city’s wastewater plant in the first six years of the agreement.
The potash mine, which is to be located 30 kilometres southeast of Regina, is expected to use another 42,240 cubic metres of recycled water a day in the remaining 39 years of the deal.
The deal also includes a $500,000 commitment fee that will become non-refundable if wastewater isn’t flowing to the potash mine by the end of 2016. If it still isn’t flowing by 2019, the city would have the option to terminate the contract.
Western Potash will cover the cost of constructing a pipeline from the wastewater treatment plant to the mine.
A city report says diverting the effluent would improve the quality of water in Wascana Creek and downstream lakes. However, the report also warns that fish habitat in the creek could be impacted by reduced stream flow.
Still, the city says the improvement in water quality may mitigate any effects on fish habitat. If federal and provincial environmental regulators determine additional mitigation is required, Western Potash would have to cover the cost of those measures.
The feasibility study for the Milestone project is expected to wrap up by the end of the month.
