Adds analyst remark, no remark from corporations
Could 27 (Reuters) – BHP Group BHP.AX is in discussions with fertilizer maker Nutrien Ltd NTR.TO a couple of partnership within the miner’s potash mission in Canada, Bloomberg Information reported, citing sources.
Potential choices embody Nutrien buying a stake within the Jansen, Saskatchewan mine, or changing into an operator and promoting the potash by means of its channels, the report stated, including that the talks had been non-public and there was no assure of a deal but.(https://bloom.bg/3fmbtHZ)
BHP and Nutrien declined to remark.
Buyers have raised considerations over the Jansen mission not too long ago, anxious {that a} potash oversupply over the following decade may crimp returns.
Australia-based BHP is the world’s largest listed miner, however doesn’t produce potash, a crop nutrient farmers unfold to extend yields.
Nutrien is the most important international fertiliser producer by capability, primarily based in Saskatchewan.
Nutrien shopping for a stake in Jansen is mindless for both firm, BMO Capital Markets analyst Joel Jackson stated in a be aware. A broader three way partnership between Nutrien and BHP involving the potash belongings of each corporations has extra potential, Jackson stated.
BHP has already sunk $4.5 billion into Jansen and forecast extra in annual capital expenditure, because it edges in direction of making a last funding resolution on the mine by mid-year.
(Reporting by Anushka Trivedi in Bengaluru; extra reporting by Rod Nickel in Winnipeg and Jeff Lewis in Toronto; Enhancing by Shinjini Ganguli)
(([email protected]; +918061823241;))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.