The new partner will be using local talent to complete its scope of work, which includes all above-ground facilities, including concrete, steel and pipework; installation of equipment; electrical and control system work; building work; and site finishing.
Stuart Olson will be mobilising its crews to the site near Regina this month and expects to have about 100 workers.
While no financial terms for the deal were disclosed, Western Potash confirmed it is a lump-sum agreement.
"The Western Phase I potash project will be the newest and most innovative, environmentally friendly and capital-efficient new potash mine in Canada," mine officials said.
"By utilising advanced drilling techniques, the project will be able to initially target the high-grade potash bed, then by using selective dissolution, preferentially leach the potash to the surface," the company added, noting that any salt is left underground and no tailings pile at the surface will exist - allowing water consumption to be reduced by half.
Next, the potash will be crystalised naturally in a pond, again reducing energy consumption as well as capital costs.
Early site preparation work is done, including an access road, site clearing and piling foundations, a water well, water pipeline and power infrastructure. Additionally, the civil work for the site's crystallisation pond has been completed.
Exploratory work at the 100%-owned Milestone project property began in 2009. The detailed engineering contract for the Phase l project was awarded to SNC-Lavalin last June.