Helium rights sale generates $15.9 million for Saskatchewan
By Your Southwest Media Group
The Saskatchewan government has completed its first-ever Crown public offering for helium and associated gas mineral rights, generating $15.9 million while introducing a new competitive process aimed at expanding the province's growing helium and natural hydrogen industries.
The inaugural offering was held June 22 and saw Millennium Land Ltd. acquire all 15 helium and associated gas permits covering more than 267,334 hectares in southern Saskatchewan. The highest individual bid reached $2.39 million for a parcel southwest of Regina.
"The launch of this new process is an important step in our government's continued efforts to grow Saskatchewan's helium sector, and to support potential development opportunities for natural hydrogen," Energy and Resources Minister Chris Beaudry said.
"I am confident that this public offering process provides a fair and competitive way for industry to acquire mineral rights, strengthening our provincial economy."
The new public offering system was introduced in response to increasing industry demand for helium and natural hydrogen exploration rights. It mirrors the competitive bidding process already used for Crown petroleum and natural gas, potash and lithium from brine rights.
The six-year permits grant companies exclusive rights to explore for helium, natural hydrogen and other associated gases.
The Ministry of Energy and Resources plans to hold two additional public offerings during the current fiscal year, with one scheduled for late August and another in the fall.
Saskatchewan is Canada's largest helium producer and currently supplies approximately three per cent of the world's helium. Through its Helium Action Plan, the province aims to increase production to 10 per cent of global supply by 2030.
The province is also positioning itself as a potential leader in natural hydrogen development, with recent exploration activity indicating growing industry interest in the emerging resource.