It's taken five years and a lot of meetings to produce what may be a precedent-setting agreement.

K+S Potash has reached a deal with the Nature Conservancy of Canada to establish and manage an offset project to protect grasslands habitat.

It means the Legacy Project mine near Bethune, Sask., goes ahead and the Nature Conservancy of Canada (NCC) will get nearly $1 million.

According to NCC, it will be the "largest known industry investment in grassland habitat offset in Saskatchewan."

The K+S Potash Canada Legacy project in Bethune, Sask., is a $4.1 billion project that started construction in June 2012. (SRC)

The grasslands are home to many at-risk species, and Cameron Wood, natural area manager for NCC said, adding they are a critical part of the province's environment.

"Grasslands are one of the rarest and most at-risk biomes in the world," Wood said in a new release. "They buffer our water, and are a habitat with some of the world's greatest biological diversity. Being able to protect them is one of the most important things we can do for the future. This new offset program is allowing us to turn necessary development into something extremely positive for nature conservation."

As a result of the Legacy Project, 194 hectares of grasslands have been impacted. NCC said that will be offset by "conserving around 402 hectares of high-value grassland."

NCC will use the money provided by K+S where it is most needed and beneficial.

Brant Kirychuk, executive director for the Ministry of Environment's Fish, Wildlife and Lands, said the ministry is happy with the deal.

"This project shows how practical habitat mitigation approaches can help industry achieve responsible development of natural resources while ensuring that important habitat is maintained in our province," Kirychuk said.

According to NCC, there is 17 to 21 per cent of original native prairie remaining in Saskatchewan, which is part of the "largest remaining native prairie habitat in southern Canada."

The K+S Legacy Project is the first new potash mine being built in Saskatchewan in 40 years.