Strong. Secure. Saskatchewan

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Strong. Secure. Saskatchewan Strong. Secure. Saskatchewan. saskatchewan.ca/invest | 1 Saskatchewan Facts: World’s largest Population: 1.2 million producer of potash GDP: $81.5B CAD 2nd largest oil producer ($58.8B USD) in Canada Land mass: 651,036 km2 34 million hectares of forest (251,366 mi2) 40% of Canada’s cultivated 100,000 lakes farmland Top 10 Reasons to Do Business in Saskatchewan 1. A Vibrant and Growing Economy ..................................................2 A decade of population, investment, export and employment growth 2. Competitive Business Environment ................................................5 International research organizations rate the province high in competitiveness 3. Strong Sectors ....................................................................7 Rich resources, world-class technologies 4. Manufacturing and Supply Chain Opportunities ...................................13 Experienced global trader 5. Solid Infrastructure ..............................................................15 Reliable utility and transportation networks 6. Innovative Leader ...............................................................17 World leader in crop science, biotechnology and clean energy 7. Young, Well-educated Labour Pool. .19 Young and well-educated labour pool 8. Educational Excellence ...........................................................20 International quality post-secondary education 9. Quality of Life ...................................................................21 Low cost of living, diverse culture and limitless recreational choices 10. Investment and Export Expertise .................................................24 Agencies serve the needs of investors and buyers 1 1. A Vibrant and Growing Economy Saskatchewan has a wealth of resources that is Home-grown companies are fueling much of this the envy of nations – agriculture, potash, uranium growth, including: and oil. And the world is watching Saskatchewan technological firsts in crop science, plant protein, • Nutrien, the world’s largest potash company agricultural equipment and clean energy. • Brandt Group of Companies, a major agricultural equipment manufacturer The province has a diversity of resources that has • AGT Food and Ingredients, one of the world’s enabled it to weather global economic cycles. In largest exporters of lentils fact, Saskatchewan has seen record population, employment, investment and export growth in International companies that have invested or the past decade. opened offices here include: • AMEC • Hutchison Whampoa • BHP Billiton • K+S Potash • Cargill • Rio Tinto 2019 Gross Domestic Product (GDP) (GDP by Sector and at Basic Prices) Source: Statistic Canada Table 36-10-0402-01, Chained 2012 dollars. $161 B* Estimated capital investment from 2010 to 2019 Investment in new exploration and development by the $3.9 B oil and gas industry forecast in 2019 Estimated investment in mining exploration and development $36.4 B from 2009 to 2019 * All dollar figures in Canadian dollars 2 “ Our productivity in the North American region is second to none.” Plant Manager CNH Industrial Seth L’Hoir Saskatoon 3 Exports Saskatchewan exports totaled $29.6 billion in Asia is the most important emerging export 2019. The United States (U. S.) is Saskatchewan’s market for the province. Saskatchewan exports top export market, receiving almost 55% of total to Asia increased from $4.3 billion in 2009 to exports. China is the second-largest export market, $7.5 billion in 2019. followed by Japan, Brazil and India. Top 10 Export Markets 2019 Top Export Products of 2019 Oil . $7 .4 B Potash . $6 .5 B Wheat . $3 .7 B Saskatchewan is the Canola Seed . $2 .4 B world’s largest exporter Canola Oil . $1 .7 B Lentils . $1 .1 B of peas, lentils and Peas . $738 M potash. Canola Meal . $666 M Soybeans . $423 M 4 2. Competitive Business Environment Saskatchewan has worked diligently in the past several years to create one of the most competitive business environments in North America. International research organization the Fraser Institute, has ranked Saskatchewan as the top jurisdiction in Canada in 2019 and top 10 in the world for mining investment attractiveness in six of the past seven years. A report on the oil sector, Scotia Playbook 2019, found that “Saskatchewan oil plays offer some of the strongest returns in North America.” Net Debt as Per Cent of GDP (As of March 31, 2020) 5 Competitive Taxes and Responsive Government The Government of Saskatchewan is committed to Annual capital investment increased $3.6 billion creating a fiscally stable economy and maintains from 2009 to 2019 and grew at an annual average a triple A credit rating from Moody’s Investor rate of 2.8%. Services, making Saskatchewan one of only two provinces in Canada to achieve Moody’s highest Saskatchewan has maintained competitive and credit rating. Saskatchewan also holds a double A stable regulations and royalty rates, providing credit rating with Standard & Poor’s. the reassurance companies need to make new investments and expand existing operations. In 2019, the Canadian Federation of Independent Business gave Saskatchewan an A grade for its red tape reduction efforts – the highest grade possible. The government puts a priority on making regulations clear, transparent and streamlined to help businesses get up and running quickly and keep costs down. “ Growing in the province has been extremely easy. If we encounter any roadblocks the Saskatchewan government is a quick phone call away.” Director Vishal Vijay Agrocorp Processing Ltd. Tax reductions and attractive incentives to note: • Corporate income tax rate as low as 10% • No payroll tax or health premiums levied for manufacturing and processing • 10% tax credit for research and development • Saskatchewan Commercial Innovation Incentive – (R&D) expenditures the first “patent box” style incentive of its kind in North America • 6% sales tax – the lowest rate of those provinces with a sales tax • Saskatchewan Value-Added Agriculture Incentive – offering a 15% tax rebate on eligible capital • Tax exemptions on eligible equipment expenditures for new or expanded operations and materials used in manufacturing • Targeting Mineral Exploration Incentive – to • 10-year royalty holiday for base and precious encourage drilling for base metals, precious metals metals and diamonds • Saskatchewan Petroleum Innovation Incentive • No Small business tax for Canadian-controlled • Oil and Gas Processing Investment Incentive private companies • No corporate capital tax for general corporations 6 3. Strong Sectors Energy Saskatchewan is one of the only jurisdictions in Saskatchewan is Canada’s third-largest producer the world that produces crude oil, natural gas, of natural gas. In 2019, gas production was 179.3 coal, uranium, biofuels, geothermal, wind and billion cubic feet. The combined estimated value of hydro power. oil and gas production was over $10.5 billion. Saskatchewan is Canada’s second-largest oil The province exports nearly 90% of its uranium, producing province and the seventh-largest with the remaining 10% fueling Canada’s nuclear onshore producer in Canada and the United States. reactors. Saskatchewan’s uranium is responsible for With approximately 36,500 active oil wells, the powering approximately one in 20 homes in the province produced 178 million barrels in 2019. U.S. Not only are Saskatchewan’s oil plays cost The province offers attractive incentives to competitive, companies view the province as a encourage innovation in the oil sector and to great place to pilot, commercialize and scale new help maximize investing in existing operations. energy-related technologies. These include: The province is a leader in petroleum research, • Saskatchewan Petroleum Innovation especially in the areas of enhanced oil recovery Incentive – offering transferable royalty/ and horizontal well drilling. These improvements freehold production tax credits of up to and completion techniques have greatly improved 25% for eligible commercialization projects production from formations such as the Bakken – one of North America’s largest oil plays. • Oil and Gas Processing Investment Incentive – providing transferable royalty/ freehold production tax credits at a rate of 15% of eligible program costs “ Saskatchewan is a great place for us to test and develop technologies, and then scale those into profitable businesses rapidly.” President & CEO Ed LaFehr Baytex Energy 7 Minerals Saskatchewan has a very diverse mineral sector Saskatchewan also has significant unrealized and is particularly rich in potash and uranium. The potential in base metals, particularly zinc and province accounts for about one third of annual copper. The Flin Flon mining camp, which straddles global potash production and is home to nearly the Manitoba-Saskatchewan border, has been a half of the world’s known resources. The world’s substantial producer for decades. It is estimated largest high-grade uranium deposits, located in to have the highest contained value of base metal northern Saskatchewan, supplied just over 13% of ore per square kilometre in Canada, with existing the world’s primary uranium production in 2019. infrastructure that helps enable new development. Over the past decade, Saskatchewan’s potash There are areas with high gold potential that industry has experienced a sustained period remain under-explored. The Seabee operation had of major expansions and interest in new its sixth consecutive year of record production development. The province’s newest potash in 2019, generating
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