BHP Billiton took another step forward with its Jansen potash project in Saskatchewan on Friday, with the submission of an environmental impact statement for the proposed mine about 140 kilometres east of Saskatoon.
BHP, which tried and failed to buy Saskatchewan's PotashCorp earlier this year in a nearly $40-billion hostile takeover, said the Jansen project is being designed to produce approximately eight million tonnes per year of potash at full capacity.
"Jansen is a world class ore body and the project fits our strategy of owning and operating large, long-life, low-cost assets. Jansen is the first and the most advanced of our potash growth options," said Graham Kerr, president of BHP Billiton Diamonds and Specialty Products.
The Jansen project and its status was a key point of dispute between BHP and PotashCorp during the takeover fight. PotashCorp had questioned BHP's commitment to develop the project if it were successful in acquiring the Saskatoon-based company.
BHP announced in January that it would spend $240-million developing the project, including ground freezing to allow shaft sinking as well as completing detailed engineering, equipment and materials commitments.
Last month, the company bought a 340-square-kilometre potash exploration permit in Saskatchewan from a Russian company.
BHP has exploration rights to over 14,500 square kilometres in Saskatchewan.