By News

BHP could be looking for port options for Jansen potash

Jun 25, 2014 | 6:32 AM

BHP Billiton could be looking for a new port option to send its future Jansen mine potash to.

The company has opted to allow the exclusivity agreement for Terminal 5 at the Port of Vancouver, Wash. to lapse.

“This will allow us to actively investigate and assess alternative rail and port options for the Jansen Potash Project. We have said we will continue to modulate the pace of Jansen development as we time our entry into the potash market to meet market demand,” BHP Billiton said in an emailed statement.

While the Port of Vancouver could still be a port option for the company in the future, it is looking to other options in Canada and the U.S. BHP Billiton has been in discussions for four years with Canadian Pacific and Burlington Northern Santa Fe to negotiate rail services to the Port of Vancouver. However, they have not been able to reach an agreement.

It’s estimated that potash production at Jansen will begin in 2020 although the company has said they will not enter the market until the demand is there. This is sufficient time, according to the email, for BHP Billiton to find an alternate solution should the need arise.

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The company’s total commitment to the project is about $3.8 billion after it announced an additional $2.6 billion last August.

“We remain committed to the Jansen investment,” the email said, adding an initial port study identified several port and rail solutions. BHP Billiton has been approached since choosing the Port of Vancouver as their preferred option.

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