BHP Billiton approves $240m for Canadian potash pr
TORONTO(miningweekly.com) – The world's biggest miner, BHP Billiton, hasapproved $240-million for early-stage development of the Jansen potashproject, in Saskatchewan, Canada.
The project is being designedto produce about eight-million tons a year of agricultural-gradepotash, which will represent BHP Billiton's first production of thecrop nutrient.
The money will go towards preparation work forproduction and service shafts, including the required ground freezingahead of shaft sinking, and completing detailed engineering andequipment and materials commitments.
Shaft sinking will begin once full environmental permits are in place, which is targeted for mid-2011, the company said.
TheJansen project is in the final stages of a pre-feasibility study and isexpected to move to feasibility phase in mid-2010, with a fullinvestment decision expected in late 2011.
"The Jansen projectis the first phase of what we expect to be our strong presence in thepotash sector,” BHP Billiton diamonds and specialty products president Graham Kerr said in a statement.
“Inconjunction with the Jansen project, we will continue to pursue otherpotash opportunities that fit within our portfolio of tier 1,long-life, export-oriented assets,” he added.
BHP Billiton isalso working on two other greenfields potash projects in Saskatchewan,Boulder and Young, and advancing work on logistics and a port.
The group holds about 7 338 km2 under exploration lease in prospective areas of the Saskatchewan potash basin.