BHP Billiton has announced it will invest $2.6 billion in the Jansen potash project in Saskatchewan, Canada however, the development of the project will be spread over the next few years with completion expected in 2016. The announcement of this investment will bring BHP’s total commitment to the project to US$3.8 billion. The site is expected to produce 10 million tons of potash per year for 50 years with an expected market demand increase of 2%-3% per year through 2030. This demand is forecast to be driven by increased global population, increased prosperity, changing patterns of food consumption, and increased agricultural demand. BHP has further announced that it will look for partners as the project continues and may sell a minority stake to select joint venture partners. BHP has exploration rights to more than 14,500 square kilometers in the Saskatchewan potash basin but Jansen is its most advanced project.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service