REGINA — BHP Billiton’s Jansen potash project in Saskatchewan took another step toward reality as the Anglo-Australian company advanced the proposed mine into the feasibility study phase.
BHP, which tried and failed to buy Saskatchewan’s PotashCorp (TSX:POT) last year, had already submitted an environmental impact statement for the proposed mine, about 140 kilometres east of Saskatoon.
“The Jansen project has the potential to become one of the world’s premier potash mines and the platform for a significant and scalable potash business for BHP Billiton,” Graham Kerr, president of BHP Billiton Diamonds and Specialty Products, said in a statement.
The Jansen project and its status was a key point of dispute between BHP and PotashCorp during the takeover fight. PotashCorp had questioned BHP’s commitment to develop the project if it were successful in acquiring the Saskatoon-based company.
Industry Minister Tony Clement killed the hostile takeover attempt when he ruled the deal would not be a “net benefit” to Canada under provisions of the Investment Canada Act.
Saskatchewan Premier Brad Wall, who had campaigned against the BHP takeover of PotashCorp, called the advancement of the Jansen project encouraging.
“This would be a brand new mine should they decide to go ahead with it and it really underscores the fact that Saskatchewan is a great place to invest, notwithstanding the debate and discussion that happened this fall over potash,” Wall said.
BHP announced in January that it would spend $240 million developing the project, including ground freezing to allow shaft sinking as well as completing detailed engineering, equipment and materials commitments.
BHP has exploration rights to over 14,500 square kilometres in Saskatchewan.