Potash is to become the “fifth pillar” of BHP Billiton’s NYE:BHP operations as global demand is expected to increase 2% to 3% each year until 2030, CEO Andrew Mackenzie told shareholders at the company’s AGM in Perth on November 21.
“The growth will be driven by a rising population and greater economic prosperity, which will change the patterns of food consumption, requiring higher yields from increasingly constrained arable land.”
“Our continued investment in potash, at an average annual spend of $800 million, will make sure we are ready to take advantage of this opportunity to add to shareholder returns.”
BHP’s massive Jansen project in Saskatchewan has an expected output of eight million tonnes a year of potash and a 70-year mine life.
The other four pillars of BHP’s business are coal, copper, iron ore and petroleum.
Reprinted by permission of MINING.com