Wrap Text
US$2.6 Billion Investment in Jansen Potash Project
BHP Billiton
NEWS RELEASE
Release Time IMMEDIATE
Date 20 August 2013
Number 20/13
US$2.6 BILLION INVESTMENT IN JANSEN POTASH PROJECT
BHP Billiton is investing US$2.6 billion to finish the excavation and lining of the Jansen
Potash project production and service shafts, and to continue the installation of essential
surface infrastructure and utilities. This investment will be spread over a number of years,
with completion of both shafts expected during the 2016 calendar year, while the associated
works program will extend into the 2017 calendar year.
The longer term outlook for potash, a fertiliser that improves the yield and quality of
agricultural production, is strong. As the world’s population grows and incomes in emerging
economies improve, agricultural demand is expected to rise. This will increase the need for
potash and require the construction of new mines. Our projections assume a shift away from
the current marketing dynamic and we believe the potash price will ultimately reflect the cost
of adding new supply.
Jansen is the world’s best undeveloped potash resource and is capable of supporting a mine
with annual capacity of ten million tonnes for more than 50 years. With economies of scale
and the use of modern mining techniques, Jansen is likely to be one of the lowest cost
sources of supply once fully developed. The successful excavation and lining of both shafts
will substantially reduce development risk and allow the company to time first production to
meet growth in market demand.
BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: “Annual investment at Jansen
of approximately $800 million will form an important part of the Group’s capital and
exploration budget, which will decline to approximately US$16 billion this year. Continued
development of the shafts reflects our confidence in the quality of our 5.3 billion tonne
measured resource and the compelling long term fundamentals of the potash industry.
“Investment at Jansen is creating a valuable asset and we will continue to pursue a
development path that maximises returns for shareholders. In time, this may include the
introduction of one or more partners, consistent with our approach for other major
operations.”
BHP Billiton Petroleum and Potash President, Tim Cutt said: “Potash and Jansen represent
a significant opportunity for BHP Billiton. Saskatchewan, with its attractive geology and
stable political and fiscal environment, is the best place in the world to develop a potash
business. Our construction activities are going well and we have successfully introduced
specialised boring machines that reduce the development timeframe and safety risk
associated with construction of the shafts. This technology has been in operation for several
months and we are very pleased with the results.”
BHP Billiton has also increased the in situ Mineral Resource tonnage estimate for Jansen,
which incorporates: additional freehold mineral rights that have been acquired; advanced
data analysis and improved estimation methods; and the inclusion of additional Inferred
Resource within the granted mining lease. Resource confidence has also increased and we
have converted significant tonnages of Indicated Resources to Measured Resources.
Consequently, the updated resource estimate for Jansen increases to 5,328 million tonnes
Measured Resource @ 25.7% K2O, 7.1% insolubles and 0.07% MgO and 1,288 million
tonnes Inferred Resource @ 25.7% K2O, 7.1% insolubles and 0.07%MgO.
The Jansen Potash project is 100 per cent owned by BHP Billiton and is located
140 kilometres from Saskatoon, Canada. Today’s approval will take the Company’s total
commitment to Jansen to approximately US$3.8 billion.
Competent Persons – J.McElroy (MAusIMM) BHP Billiton, B.Nemeth (MAusIMM) BHP
Billiton
BHP Billiton has 100% equity.
%K2O – potassium oxide, Insolubles – insoluble content, MgO – magnesium oxide. %MgO is
generally used as a measure of carnallite (KCl.MgCl2.6H2O) content where % carnallite
equivalent = %MgO x 6.8918. However, in the above statement the main source of the
stated MgO content is the dolomite fraction of the insoluble material. Areas of known
geological anomalies, carnallitite (which comprises carnallite, halite and minor associated
insolubles) and privately owned mineral tenure, not yet acquired, have been removed from
the estimate.
The Mineral Resource is stated for the Lower Patience Lake potash unit. All material
between the top “406” clay seam and base “402” clay seam has been included and no cut-off
grade has been applied. No further modifying or mining extraction factors have been applied
to the Mineral Resource.
Competent Person’s Statement
The statement of Mineral Resource being presented is based on information compiled by the
above named Competent Persons and relates to Mineral Resource estimates as at 30 June
2013. Competent Persons are full time employees of BHP Billiton, have sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the
activity they are undertaking to qualify as a Competent Person as defined in the JORC Code
2004. All Competent Persons are members of the Australian Institute of Mining & Metallurgy
(AusIMM). The Competent Persons consent to the inclusion in this report of the matters
based on their information in the form and context in which it appears.
Further information on BHP Billiton can be found at: www.bhpbilliton.com.
Sponsor: Absa Capital (the investment banking division of Absa Bank Limited, affiliated with
Barclays)
Media Relations Investor Relations
Australia Australia
Emily Perry James Agar
Tel: +61 3 9609 2800 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 467 807 064
email: Emily.Perry@bhpbilliton.com email: James.Agar@bhpbilliton.com
Fiona Hadley Andrew Gunn
Tel: +61 3 9609 2211 Mobile: +61 427 777 908 Tel: +61 3 9609 3575 Mobile: +61 402 087 354
email: Fiona.Hadley@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Eleanor Nichols United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748
email: Eleanor.Nichols@bhpbilliton.com Tara Dines
Tel : +44 20 7802 7113 Mobile : +44 7825 342 232
United Kingdom Email : Tara.Dines@bhpbilliton.com
Ruban Yogarajah Americas
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com James Agar
Tel: +61 3 9609 2222 Mobile: +61 467 807 064
Jennifer White email: James.Agar@bhpbilliton.com
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
email: Jennifer.White@bhpbilliton.com Matt Chism
Tel: +1 71 359 96158 Mobile: +1 281 782 2238
Americas email: Matt.E.Chism@bhpbilliton.com
Jaryl Strong
Tel: +1 713 499 5548 Mobile: +1 281 222 6627
email: Jaryl.Strong@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 20/08/2013 08:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
