Tuesday 20 August 2013

BHP Billiton bets $2.6bn on fertilizers amid potash market chaos — RT Business

BHP Billiton bets $2.6bn on fertilizers amid potash market chaos — RT Business:

"Despite the recent turmoil on the potash market and falling profits, BHP Billiton, the world's top mining company, continues investing in one of the world’s largest potash mines. The Australian miner says it’s betting on rising global food demand.

BHP plans to spend $2.6 billion by 2017 to build shafts and surface infrastructure at the Jansen mine in Canada, which could produce 10 million metric tons of potash a year for more than 50 years, the Wall Street Journal (WSJ) reports. The company is also seeking partners that could take a stake in the project.

The Jansen investment will end a freeze in the company’s spending on new projects. Last year BHP moved to conserve cash and protect earnings, as China's slowing economy hurt commodity prices.
The economics of the Jansen project seems even more uncertain now after the collapse of one of the two global cartels that helped control potash prices for the benefit of producers. "

'via Blog this'

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