Adds BHP assertion, Westshore shares
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 mission 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 largest listed miner has estimated Jansen would price as much as $5.7 billion in its first phases.
The mission in Canada’s Saskatchewan province provides diversification into agricultural markets on condition that potash is a key component in plant diet that additionally makes crops extra drought resistant.
“BHP confirms that Westshore Terminals Restricted Partnership … has signed an settlement to offer port companies for the Jansen potash mission in Saskatchewan,” BHP stated in a press release to Reuters.
Final month BHP stated it will current its board with a call on whether or not to maneuver forward with Jansen after selecting between two port choices.
“If the Jansen mission does proceed, the settlement requires Westshore to deal with potash for BHP for a time period to 2051, topic to extension,” Westshore stated.
Beneath 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 change into binding on BHP if it publicizes a closing resolution to proceed with Jansen’s first stage, Westshore stated.
Westshore’s Toronto-listed shares climbed as a lot as 38% Friday.
(Reporting by Jeff Lewis; enhancing by Jason Neely, Kirsten Donovan)
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