Quote:
Originally Posted by Echoes
I suspect that the reference to a Saskatoon HQ with a Calgary office means that not much is going to change with respect to the number of head office jobs in Saskatoon. The established workforces of each respective company will probably more or less stay put where they are today.
If this new entity does need more space, I can see them taking a serious look at the River Landing towers. It's a signature location that will surely be hard to pass up.
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The reality is the centre of the universe for Potash is Saskatoon. Ok, maybe we have to restrict the definition of the universe to Canada.
Take BPH Billiton as an example, their Canadian headquarters were in Vancouver. Generally regarded by most as a major centre for mining. Given how much BPH Billiton was focused on Potash they relocated staff and headquarters from Vancouver to Saskatoon.
I think it fair to say if its Uranium or Potash there is a strong argument to be made to be based in Saskatoon. The same holds if it is oil or energy for Calgary.
I don't know how Potash Corp is structured. If I were to guess I would not be surprised if each mine is separately incorporated and then owned by Potash Corp. If that is the case, each mine will file its own tax return in the jurisdiction where it operates and then issue dividends to the parent. The parent could charge management fees to the subsidiary and wipe out any tax if the local tax rate were to high. Certain they have bright people in place to optimise all of this. This also facilitates setting up joint ventures and having others take stakes in a given operation.