Buffalo Potash has received Saskatchewan approval to construct and operate the Initial Production Module at its Disley potash project, clearing the main regulatory step for the company’s planned first production in the first quarter of 2027.
The module, located about 50 kilometers northwest of Regina, is designed to produce 125,000 tonnes of soluble-grade potash annually. The permit covers wells, pipelines, storage tanks, pumps, processing equipment, utilities, roads, drainage and related infrastructure. It is valid until April 30, 2027, with an option for extension.
The approval follows a Sept. 17 determination that the module did not meet the provincial criteria requiring an environmental impact assessment. It remains subject to conditions including approval of a site characterization and groundwater-monitoring plan, compliance with air-quality requirements before processing equipment operates and maintenance of financial assurance.
Buffalo says its source and disposal wells and horizontal drilling are complete, while site development is under way. The next major steps are circulating brine through the underground mining system and installing and commissioning surface processing equipment. The company’s horizontal line-drive method uses parallel wells to move brine through potash-bearing rock, dissolve potassium chloride underground and bring the solution to the surface for processing.
The initial module is intended to test the method commercially and generate early operating data and cash flow. Buffalo plans to sell soluble-grade product for agricultural uses and as a drilling-fluid additive, while a preliminary assessment also identified potential sales of potassium-chloride brine to regional oilfield customers.
The company is proceeding without a feasibility study establishing mineral reserves and demonstrating economic and technical viability. Buffalo has warned that this approach carries a higher risk of economic and technical failure, including the possibility that the mining method, production rates, recoveries or costs may differ materially from preliminary estimates.
The broader Disley plan calls for two additional facilities, Disley East and Disley West, each designed for 500,000 tonnes per year. Those facilities would need separate regulatory approvals and construction decisions after a feasibility study, and granular potash production is not expected before 2029 under the company’s current plans.