BHP delays decision on Jansen potash project by a few months

MELBOURNE, June 17 (Reuters) - BHP Group is reviewing two port options for its Jansen potash project in Canada and expects to make a decision in the coming few months before taking the project to the board for a final investment decision, an executive said on Thursday.

BHP had previously said it expected to make a decision by mid year on whether to proceed with the project in Canada’s Saskatchewan province, which is estimated to cost up to $5.7 billion in its first phase.

“We are considering two options in terms of the port. One is a commercial option at the port of Vancouver, one is a greenfield option,” Ragnar Udd, President of BHP’s Minerals America said on Thursday.

“We would like to have those locked in before we take them to the board,” he said.

“We continue to expect that this (decision) will occur in the next, coming few months.”

Development of the project is expected to take five years and have an annual capacity to produce around 4.4 million tonnes of potash with an estimated mine life of 100 years. It will have capacity for an additional 12 million tonnes in stages thereafter. (Reporting by Melanie Burton; editing by Richard Pullin)