BHP is ramping up its efforts in Saskatchewan to combat crop nutrient pricing. The company is currently looking at ways to speed up the development of the Jansen potash project, a $5.7 billion fertilizer project located in the province. According to BHP's president for Americas minerals Ragnar Udd, this project is essential for the company's long-term success.
The goal of the project is to offer long-term success to the company and to the agriculture of the region. Jansen is one of the largest undeveloped potash deposits in the world. It is a big project that will take years to fully develop.
The company is currently evaluating options to speed up the development of the project, which Udd has completed extensive research and invested in at a pivotal moment. The first stage of construction was approved in August of last year, with the project expected to begin production in 2027.
Fertilizer prices have surged recently, due largely to supply chain frictions that have been exacerbated by Russia’s invasion of Ukraine. This has created an opportunity for BHP to capitalize on its investment.
Udd believes that the Jansen project will be beneficial to improving supply for a world that will demand more food in the coming years. This investment will not only benefit local suppliers but it will also lead to new jobs in the province.
The other added benefit it will provide is that BHP is planning on selling its potash directly to customers rather than working through Canpotex marketing which will cut down on some further costs for access to many of the local market users.
As well as taking a revolutionary new approach to the business, BHP is also working with the local Saskatoon community to invest in other sectors. They recently tried to acquire a nickel mine in the area to diversify their investment and increase their presence in the Canadian province.
Although they failed to acquire the mine, they are interested in investing in other industries that focus on renewable energy or that mine resources responsible for renewable energy. This investment in the region and in renewable resources will also work to contribute to the landscape of agriculture for Saskatchewan.
Copper, potash and nickel are all resources that BHP is focusing its investing eye on. The company is looking for ways to increase its investment in the potash industry and to massively improve the conditions of agriculture across the province and North America.
With continued investment in the region, it likely won't be long before we see further news stories about mining investments from BHP across Saskatchewan and Canada. With the company eying to transition its operations to clean energy in the next 30 years, any change they can make in reducing supply issues will be beneficial to see their mission through.
We will be following this story closely and reporting on any new developments as they happen. The changes to investment in this region are bound to have a ripple effect throughout the mining industry and in the development of further mining technology.