BHP Group may be heading for another clash with investors as the world’s biggest miner gets closer to a decision on whether to build, sell or mothball its $20 billion potash project.
The Jansen mine in Canada is aimed at giving the company exposure to rising global food demand and represents one of its few big growth prospects. BHP has already spent about $2.7 billion on the project, according to an October filing, and Chief Executive Officer Andrew Mackenzie last month spoke enthusiastically about the outlook for potash, a crop nutrient.
Yet investors and analysts are skeptical. The big-ticket project in the prairie province of Saskatchewan means getting into a new commodity dominated by a small handful of producers. Continue Reading →