BHP Says Memorandums of Understanding in Place With Importers for Jansen Output
15 September 2021 - 9:10AM
Dow Jones News
By David Winning
SYDNEY--BHP Group Ltd., the world's largest mining company, said
it has non-binding memorandums of understanding with major
importers for up to 100% of future production from its Jansen
project in Canada's Saskatchewan province.
BHP last month approved the first phase of the Jansen project,
which is estimated to cost $5.7 billion to build. Potash is one of
three major fertilizer ingredients, alongside nitrogen and
phosphate, and BHP thinks mining at Jansen could last about 100
years.
BHP outlined its marketing strategy for Jansen's potash as part
of a presentation on the project to investors on Wednesday. BHP
said its enlarged marketing team will have more than five years to
build relationships and secure binding sales.
The strategy aims to "replicate tried and tested model of
marketing directly to major customers via regional offices
leveraging BHP's broader commercial resources," the company said in
the presentation materials.
BHP said markets for Jansen's potash could include the U.S.,
Brazil, India, and China. Potash is seen by farmers as an
attractive resource because it tends to boost yields, aid in
drought tolerance and improve crop quality.
BHP has wanted to be in the potash trade for some time. A decade
ago, it unsuccessfully bid $38.6 billion for Potash Corp. of
Saskatchewan, which in 2018 merged with Agrium Inc. to form Nutrien
Ltd.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
September 14, 2021 18:55 ET (22:55 GMT)
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