Operator: Nutrien Ltd.
Location: Saskatchewan, Canada
Royalty: $0.36 to $1.44 per ton potash
Term of Royalty: Life of Mine
Allan is an underground potash mine owned and operated by Nutrien Ltd. Allan is located in central Saskatchewan, approximately 45 kilometers east of Saskatoon near the town of Allan. Production of potash from the Allan mine began in 1968.
The Allan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate potash ore by the stress-relief mining method, with continuous conveyor belt transport of ore from the mining face to the bottom of the production shaft. Raw potash ore is processed and concentrated on surface – both flotation and crystallization methods are used at Allan to produce granular, standard, and suspension-grade potash products, and concentrated finished potash products (near-pure potassium chloride) are sold and shipped to markets in North America and offshore.
Royal Gold holds a 40% interest on a sliding-scale royalty on the Allan potash mine. The royalty rate varies based on annual potash production. On the first 600,000 tons of potash produced during a calendar year, the royalty is:
In excess of 600,000 tons, and up to 800,000 tons of potash produced during a calendar year, the royalty is 50% of the amounts shown above. No payment is due beyond 800,000 tons of potash produced.
Royal Gold acquired this royalty interest effective October 1, 2008, as part of the acquisition of a royalty portfolio from Barrick Gold Corporation.