By David Winning 
 

SYDNEY--BHP Group Ltd., the world's largest mining company, said it has non-binding memorandums of understanding with major importers for up to 100% of future production from its Jansen project in Canada's Saskatchewan province.

BHP last month approved the first phase of the Jansen project, which is estimated to cost $5.7 billion to build. Potash is one of three major fertilizer ingredients, alongside nitrogen and phosphate, and BHP thinks mining at Jansen could last about 100 years.

BHP outlined its marketing strategy for Jansen's potash as part of a presentation on the project to investors on Wednesday. BHP said its enlarged marketing team will have more than five years to build relationships and secure binding sales.

The strategy aims to "replicate tried and tested model of marketing directly to major customers via regional offices leveraging BHP's broader commercial resources," the company said in the presentation materials.

BHP said markets for Jansen's potash could include the U.S., Brazil, India, and China. Potash is seen by farmers as an attractive resource because it tends to boost yields, aid in drought tolerance and improve crop quality.

BHP has wanted to be in the potash trade for some time. A decade ago, it unsuccessfully bid $38.6 billion for Potash Corp. of Saskatchewan, which in 2018 merged with Agrium Inc. to form Nutrien Ltd.

 

Write to David Winning at david.winning@wsj.com

 

(END) Dow Jones Newswires

September 14, 2021 18:55 ET (22:55 GMT)

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