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BHP names new exec, moves offices to Saskatchewan

SASKATOON — BHP Billiton named a new executive to head its potash business and announced plans Tuesday to move the group’s offices from Vancouver to Saskatoon.

SASKATOON — BHP Billiton named a new executive to head its potash business and announced plans Tuesday to move the group’s offices from Vancouver to Saskatoon.

Tim Cutt will take over the company’s diamonds and specialty products business, which includes the global miner’s potash projects, on June 1.

Cutt is currently BHP’s president for production in its petroleum business.

BHP (NYSE:BHP) tried and failed to buy Saskatoon-based PotashCorp (TSX:POT) last year after the federal government stepped in and blocked the deal under provisions of the Investment Canada Act.

The takeover bid for PotashCorp. was also opposed by the Saskatchewan government, which argued that the former Crown corporation should remain in Canadian hands.

BHP’s Jansen potash project was a key point of dispute during the takeover fight. PotashCorp had questioned BHP’s commitment to develop the project if it were successful in acquiring the Canadian company.

In March, BHP signed a deal with SNC-Lavalin Group (TSX:SNC) to help develop the mine.

The Montreal-based engineering and construction firm will initially complete a feasibility study for the first phase of the Jansen potash project, about 140 kilometres east of Saskatoon.

Saskatchewan premier Brad Wall said Tuesday that BHP Billiton’s corporate move to Saskatchewan is a sign the company is committed to its potash project in the province.

“It bodes well generally for us as a province to have this vote of confidence,” Wall said at a business conference in Toronto.

“I think it speaks well to the potential for them going ahead with the new mine.”

Meanwhile, Saskatchewan Energy and Resources Minister Bill Boyd said the shift will add 30 jobs to the Saskatoon office — which currently employs 69 people — and reflects Saskatchewan’s robust mining industry,

“BHP Billiton has indicated its strong commitment to Saskatchewan and the major potash projects it is developing here,” Boyd said in a release from Regina.

“Our existing potash producers are following through with more than $12.2 billion worth of expansions to their existing mines over the next decade,” Boyd said. “Add to this the other projects on the drawing board by new companies and the future looks very bright indeed for our potash industry, and by extension, for the future of our province.”

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.

Cutt takes over from Graham Kerr, who has led the diamonds and specialty products business since 2007. BHP said Kerr was returning to Australia due to a family illness and would remain with the company.

In addition to the potash assets, BHP’s diamonds and specialty products business includes an 80 per cent stake in the Ekati diamond mine in the Northwest Territories.

The Ekati mine produces about three million carats of rough diamonds a year.

On Monday, BHP announced the approval of a plan to extend the life of the Misery open pit at the Ekati mine that was mined from 2001 to 2005.

Stripping operations are to begin in October, with ore production expected starting late in 2015 and running to mid 2017.

With files from Craig Wong and Sunny Freeman