TORONTO, July 23 (Reuters) – BHP Group BHP.AX has reached conditional settlement with a unit of Westshore Terminals Funding Corp WTE.TO for port companies for the worldwide miner’s proposed Jansen potash mine in Canada, the terminal operator stated late on Thursday, transferring the undertaking nearer to fruition.
The port settlement is topic to approval by BHP’s board and conditional on it transferring forward with Jansen’s first part, Westshore stated in a launch.
The world’s greatest listed miner has estimated Jansen would value as much as $5.7 billion in its first phases.
The undertaking in Canada’s Saskatchewan province gives diversification into agricultural markets provided that potash is a key component in plant diet that additionally makes crops extra drought resistant.
Final month BHP stated it could current its board with a choice on whether or not to maneuver forward with Jansen after selecting between two port choices.
“If the Jansen undertaking does proceed, the settlement requires Westshore to deal with potash for BHP for a time period to 2051, topic to extension,” Westshore stated.
Underneath the settlement, Vancouver-based Westshore would assemble infrastructure to deal with potash at Westshore’s Roberts Financial institution Terminal by 2026, with BHP funding the development.
The pact would turn into binding on BHP if it publicizes a ultimate resolution to proceed with Jansen’s first stage, Westshore stated.
(Reporting by Jeff Lewis; enhancing by Jason Neely)
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