CAPITAL INVESTMENTS – CANADA

Potash bull sees upside in BHP push at Jansen

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 22-Aug-19

BHP expects to have a capital expenditure budget of about $US8bn for fiscal 2021, and CEO Andrew Mackenzie has indicated that less than $US500m will be allocated to the Olympic Dam mine in South Australia and the Jansen potash project in Canada. A decision on whether to proceed with the Jansen project is likely within 18 months. Getting it to the production stage is slated to cost between $US5.3bn and $US5.7bn, and Tal Lomnitzer of Janus Henderson says rising global demand for food means the project will deliver long-term benefits for BHP and its shareholders.

CORPORATES
BHP GROUP LIMITED – ASX BHP, JANUS HENDERSON GROUP PLC – ASX JHG, ELLIOTT MANAGEMENT CORPORATION

As decision looms, BHP’s potash passion play fades – for now

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Original article by James Thomson
The Australian Financial Review – Page: 17 & 22 : 18-Mar-19

It is estimated that commencing production at BHP’s Jansen potash project in Canada will require a capital investment of about $US5bn ($7bn). BHP has yet to make a firm commitment to the project, and observers say the resources group cannot continue to postpone a decision indefinitely. On one hand, potash is likely to be a boom commodity in coming years as demand for agricultural crops in regions such as Asia grows. However, the Jansen project will deliver relatively low returns for BHP investors, while global supply of potash is increasing.

CORPORATES
BHP GROUP LIMITED – ASX BHP, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED