The Economic Impact of Our New Brunswick Expansion
As PotashCorp builds a new CDN $1.66 billion mine and mill in Sussex, NB alongside its existing facility, it is also helping to build up the local economy through an emphasis on local purchasing and hiring.
For project coordinators Les Frehlich and Jeff Gaudette, the morning drive to work presents many reminders that they're contributing to the company's goal of improving the economic well-being of its communities.
Numerous businesses have opened up in nearby Sussex since the construction was announced in July 2007, including a doctor's office and a car-rental agency. The previously seasonal motel and restaurant, the Timberland, is now open year-round.
"There's a new vitality to our area thanks to the influx of workers," says Cathy MacIntyre, who operates the Timberland. "We're nearly next-door neighbors to the mine, and we've seen a great increase in business since they began their expansion project."
"So far, almost all the tradesmen have been local," says Les Frehlich, Project Coordinator for Surface Development. "Generally, the economy in New Brunswick is growing."
"And the success of the mine affects everyone in town. You can see it in the people's faces. They're glad to see us expanding," said Jeff Gaudette, Project Coordinator for Mine and Shaft Development.
At the end of 2008, approximately 180 contractors were working on the project, which includes a mine replacing the current smaller one, as well as a mill, a salt warehouse and a compaction building.
"By summer, we'll be seeing 600 to 800 contractors on site – electrical contractors, structural steel workers, mechanical contractors, cement contractors, you name it," Frehlich said. "We'll need to hire some specialists from outside of the area, but the bulk of the workforce will come from right inside the Maritime provinces."
"We look for talent in the Maritimes first and give preference to local suppliers that are on competitive terms," Gaudette says. "There's a large industrial workforce in New Brunswick that's been idled lately. It's a great asset to tap into."
Frehlich points out that the PotashCorp expansion and other large projects in the province are even luring back to the region workers who had left to take advantage of the hiring boom in Alberta due to oil sands production.
After construction is completed in 2011, and the three-year period of ramp-up that will follow, the expanded facilities will be able to produce 2 million tonnes of potash annually, which should help keep the local economy strong.
"There will be 140 additional jobs at our facility, and that will translate to more local spending in the community for a long time to come," says Gaudette, who serves on a local government committee acting as a liaison between citizens and industry.
Sussex Mayor Ralph Carr said that PotashCorp communicated effectively at every step in the expansion process, and the new mine plans have revitalized the community.
"With the new mine being announced, it's given our economy a real boost," Carr says. "The communities surrounding the plant, with Sussex being the closest, are seeing a long-term economic benefit from it."
"It's exciting to see the increase in cars and pickup trucks coming to work in the morning," Frehlich says. "When the project is finished and we see product being shipped to our customers, it brings home how important this expansion is to PotashCorp – and to the farmers who need this nutrient to keep their crops, and their livelihoods, growing."