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Lateniteon Feb 14, 2012 12:59pm
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BHP responds to report of Jansen project delay
BHP responds to report of Jansen project delayhttps://www.cjme.com/story/bhp-responds-report-jansen-project-delay/43797
BHP responds to report of Jansen project delay
An Australian paper reported Monday the Jansen potash mine could face delays or reduced investments
Reported by Gerald Bauman
First Posted: Feb 14, 2012 10:03am
BHP wants to clarify the situation on a big potash mine project in Saskatchewan.
“In our view, Jansen is a go and we’re working towards first production in 2015,” Chris Ryder, BHP’s vice-president of external affairs, told John Gormley Live Tuesday morning.
An article in the Sydney Times-Herald suggests the world's biggest mining company is concerned about a massive investment in Jansen east of Saskatoon.
One analyst is quoted as saying BHP management has acknowledged projects need to be staggered due to heavy capital commitment and that Jansen is the last cab off the rank due to greater technical and marketing risk.
Ryder says that was not said.
“Our CEO was simply trying to shed some light on the capital allocation process in the company of our size,” explained Ryder. “But Jansen is a project that we’re excited at right from the board level, obviously to the project level.”
Ryder says BHP has already spent between one and $2 billion on the project.
Edited by News Talk Radio's Sabeen Ahmad.