BHP Group PLC (LSE:BHP), the world’s largest diversified natural resources company, said it approved US$5.7bn (GBP4.1bn) in capital expenditure for the Jansen Stage 1 potash project in the province of Saskatchewan, Canada.
The approval was part of its strategy of growing its exposure to “future facing commodities”, the mining giant said on a day that also saw it announce a merger of its oil and gas assets with Woodside Petroleum Ltd, the release of its full-year results and its intention to end its dual listing in London.
“This is an important milestone for BHP and an investment in a new commodity that we believe will create value for shareholders for generations,” said BHP chief executive Mike Henry. “Jansen is located in the world’s best potash basin and is expected to operate up to 100 years.”
Jansen S1 is expected to produce about 4.35 million tonnes of potash per year. The first ore is targeted in the 2027, with construction expected to take approximately six years, followed by a ramp up period of two years.
“Potash provides BHP with increased leverage to key global mega-trends, including rising population, changing diets, decarbonisation and improving environmental stewardship,” said Henry.
Jansen is the world’s largest undeveloped potash deposit.