Monday, May 23, 2022

BHP accelerates potash mine

BHP of Australia is speeding up construction of a potash mine at Jansen, Sask, now aiming to have it producing nine to 12months earlier. 


That means it will be marketing about 4.35 million tonnes a year beginning in early 2027.


And the company said it is also considering plans for the second phase that would add another four million tonnes per year.


“We are not saying we will do that today. We will wait and see how the market unfolds,” said company chief financial officer David Lamont.


“But that is something that we think makes sense.”


It makes sense because global supplies of potash are being threatened by the war in Ukraine and sanctions imposed on Russia’s economy.


Russia and Belarus account for 38 percent of the 70 million tonnes of global potash supply. Much of the rest comes from Nutrien in Canada.