By Rod Nickel
WINNIPEG, Manitoba, June 22 (Reuters) – Canadian potash producer Nutrien shouldn’t be targeted on any potential collaboration with miner BHP Group, a senior Nutrien government stated on Tuesday within the firm’s first public feedback about studies of potential cooperation.
BHP BHPB.L has for years been developing a potash mine at Jansen, Saskatchewan, close to Nutrien’s NTR.TO six mines within the Canadian province. BHP expects to current its board with a call in a couple of months on whether or not to finish the venture.
Canada’s Globe and Mail newspaper reported in Might that BHP and Nutrien have been negotiating a three way partnership that might see Nutrien take management of the Jansen mine, whereas Bloomberg reported the businesses mentioned numerous partnership choices. Each cited unnamed sources.
“At this time it isn’t our focus,” stated Nutrien Government Vice-President of Potash Ken Seitz, in an interview, requested about potential for cooperation with BHP.
“I am going to simply say that all the things you’ve got seen is speculative and inaccurate.”
BHP, the world’s greatest miner, has estimated Jansen would value as much as $5.7 billion in its first part. Potash affords BHP diversification from copper and iron ore into agricultural markets. Farmers unfold the crop nutrient to spice up yields.
Potash costs are surging, on account of rising demand and up to date European Union (EU) sanctions on Belarus, a significant producer. Nutrien on Monday stated it will enhance potash output this yr to take benefit.
Seitz stated sanctions may hamper seaborne exports by Belaruskali, Belarus’ state-owned potash firm, because it depends upon the Klapeida port in EU member Lithuania.
“That might be the large one, ready to see whether or not as a part of the sanctions, that commerce route can be closed off,” he stated.
Nutrien may additionally profit if gross sales by Russian potash producer Uralkali change Belaruskali shipments to some markets and quick others, like Brazil, Seitz stated.
(Reporting by Rod Nickel in Winnipeg Enhancing by Marguerita Choy)
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