Nutrien Ltd., Saskatoon, is not focused on collaboration with BHP regarding that company’s Jansen potash project in Saskatchewan, according to an interview with Nutrien Executive Vice President of Potash Ken Seitz reported by the National Post.
“Today it’s not our focus,” said Seitz, when asked about the potential partnership. “I’ll just say that everything you’ve seen is speculative and inaccurate.”
Media reports were circulating last month that BHP was in talks with Nutrien about a potential partnership in the Jansen potash project (GM May 28, p. 17; June 18, p. 1). The parties were reported to be discussing multiple options, including Nutrien becoming the operator and selling the potash through its existing channels, or the Canadian company taking a stake in the Jansen mine, according to sources familiar with the matter.
However, for its part, BHP on June 17 indicated to investors and analysts that a partnership on Jansen was not on its immediate horizon. BHP’s Mineral Americas President Ragnar Udd, at a BHP Potash Outlook presentation and briefing, said the mining group is currently focused on getting Jansen to a position where it can take stage 1 of the Jansen project to BHP’s Board for a Final Investment Decision (FID).
Udd also had reiterated earlier comments by BHP CEO Mike Henry that the mining group doesn’t need a partner “to make Jansen work.”
Responding to a question around BHP’s potential marketing and distribution strategy for Jansen potash, he told analysts and investors that, “We believe based on our experience in terms of bulks and recognizing the norm across the industry, we believe the best way to maximize long-term value of the Jansen asset is to control our own production and logistics supply change and sales.”
However, Udd earlier emphasized that BHP was not adverse to bringing in a partner for the project, noting that the majority of BHP’s assets do have some sort of partner.
At the June 17 event, BHP gave its strongest indication to date that it intends to go ahead with Jansen. In its 56-page presentation, it laid out the pro-case for the potash project, and for the mining group to become a major new global supplier of the nutrient.
However, the group signaled the FID on whether to proceed with its Jansen Stage 1 project may be delayed beyond the earlier indicated “mid-calendar year” date as it considers port options for the project.