Gibt`s denn hier nix zu K+S? o. T.

By: Martin Creamer
Published on 18th August 2008

The world’s largest diversified mining company BHP Billiton would be considering the investment of “billions upon billions of dollars” into potash mining in the next 12 months, which was “probably the most exciting opportunity of them all”, BHP Billiton CEO Marius Kloppers said on Monday.

Kloppers said BHP Billiton’s specialised products group was working “in a very real way” on the “most exciting” Anglo Potash transaction, which the company announced earlier would give it access to 7 338 km2 of highly prospective exploration permits in the immediate vicinity of existing major potash mines in Saskatchewan, Canada.

He said that this had given the company an opportunity “to enter a new business at scale”.

“We will give an update in a couple of months time on the progress of the potash project,” Kloppers enthused.

In the meantime, Kloppers said, “you will see about $100-million of expense on that project over the next 12 months as we firm up and eventually that could result in billions upon billions of dollars being invested in potash mining”.

BHP Billiton bid C$284-million for the Toronto Venture Exchange-listed Anglo Potash, an offer represented a 34% premium.

Anglo Potash owned 25% in an exploration joint venture with BHP Billiton.

Ninety-five per cent of world potash production is used in fertiliser, with Saskatchewan responsible for a quarter of global potash output.

Fertiliser giant Potash Corporation of Saskatchewan recently reported second-quarter earnings of $905,1-million, its highest ever and more than triple the profit of $285,7-million posted in the same period a year ago.