Australian mining giant BHP Group has entered non-binding agreements to sell the entire output from its Jansen potash project in Saskatchewan, Canada, Reuters reported.
The company aims to convert these sales agreements into binding offtake contracts over the next 12–18 months, signalling a strategic move into the global fertiliser market.
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BHP chief commercial officer Ragnar Udd explained that the company’s focus is on ramping up production at the Jansen mine, with an expected start date in late 2026.
The initial phase will see an annual production of 4.35 million tonnes (mt), with a second phase increasing the capacity to 8.5mt per year.
This expansion is set to increase the global potash supply by approximately 10%. The strategy for selling potash involves partnering with distributors, as opposed to direct sales to resellers.
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Udd also confirmed that BHP is not considering the acquisition of the Cobre Panama copper mine from First Quantum Minerals.
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By GlobalDataThe mine, currently idle, is one of the largest open-pit copper mines in the world.
BHP’s move into the potash market is poised to have a significant impact, challenging the dominance of producers in Canada, Belarus and Russia.
Udd was quoted by the news agency as saying: “A lot of the feedback we have had from customers is how thrilled they are to be seeing a new reliable, stable form of supply coming in from an industry player that is well-known.
“BHP will turn tentative sales into binding contracts – typically lasting one year – as production comes online, with the first likely in late 2025 or early 2026.”
Last month, it was reported that BHP will embark on a global restructure to boost productivity and lower operational costs, primarily in Australia.
The restructuring is expected to impact BHP’s operations across Australia and the Americas, although the exact number of jobs impacted remains undisclosed.
