BHP’s decision on Jansen potash mine imminent
Mine shaft at Jansen. (
Image courtesy of BHP)
BHP (ASX, NYSE, LON: BHP), the world’s largest miner, is weeks away from deciding whether to go ahead with its long-delayed Jansen potash project in Canada, more than 10 years after completing the mine’s feasibility study.
The company has been mulling a final decision on the asset for at least eight years, during which it has spent about $4.5 billion laying the ground for crop nutrient-producing project.
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As the deadline for choosing to approve a further $5.7 billion in spending to bring Jansen into production approaches, BHP has begun talks with Canadian rival Nutrien (TSE, NYSE: NTR). The companies are exploring a potential partnership that could help make the project less risky and provide critical infrastructure.
BHP has struggled with the Jansen project for years. Despite already spending about US$4.5 billion on the project east of Saskatoon and digging two 1,000-meter deep shafts, the company has yet to approve its construction and has faced shareholder opposition.
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BHP is in talks with Nutrien on giant potash mine
BHP shares rose as much as 3.4% in London on Thursday after gaining 1% in Sydney.
By Thomas Biesheuvel and James Thornhill, Bloomberg
27 May 2021 13:57
Image: James MacDonald/Bloomberg
BHP Group is in talks with Nutrien Ltd. about a potential partnership in its massive Canadian potash venture as the worldâs biggest mining company moves closer to a final decision on the project.
The pair are discussing multiple options, including Nutrien becoming the operator and selling the potash through its existing channels, or the Canadian company taking a stake in the Jansen mine, according to people familiar with the matter. There is no guarantee the talks will lead to a deal, said the people, who asked not to be identified as the discussions are private.
BHP Group is in talks with Nutrien Ltd. about a potential partnership in Saskatchewan’s Jansen potash mine as the world’s biggest mining company moves closer to a final decision on the project.