BHP reaches conditional port services deal for Canada potash mine (updated)

Westshore Terminals Investment

23/07/2021 16:26

(Adds BHP statement, Westshore shares)
    TORONTO, July 23 (Reuters) - BHP Group  BHP.AX  has reached
conditional agreement with a unit of Westshore Terminals
Investment Corp  WTE.TO  for port services for the global
miner's proposed Jansen potash mine in Canada, the terminal
operator said late on Thursday, moving the project closer to
fruition.
    The port agreement is subject to approval by BHP's board and
conditional on it moving ahead with Jansen's first phase,
Westshore said in a release.
     The world's biggest listed miner has estimated Jansen would
cost up to $5.7 billion in its first phases. 
    The project in Canada's Saskatchewan province offers
diversification into agricultural markets given that potash is a
key element in plant nutrition that also makes crops more
drought resistant.  urn:newsml:reuters.com:*:nL1N2MQ1E7
    "BHP confirms that Westshore Terminals Limited Partnership
... has signed an agreement to provide port services for the
Jansen potash project in Saskatchewan," BHP said in a statement
to Reuters.  
    Last month BHP said it would present its board with a
decision on whether to move ahead with Jansen after choosing
between two port options.  urn:newsml:reuters.com:*:nL2N2NZ001
    "If the Jansen project does proceed, the agreement requires
Westshore to handle potash for BHP for a term to 2051, subject
to extension," Westshore said.
    Under the agreement, Vancouver-based Westshore would
construct infrastructure to handle potash at Westshore’s Roberts
Bank Terminal by 2026, with BHP funding the construction. 
    The pact would become binding on BHP if it announces a final
decision to proceed with Jansen's first stage, Westshore said.
    Westshore's Toronto-listed shares climbed as much as 38%
Friday.  urn:newsml:reuters.com:*:nL4N2OZ2EZ
    
    

 (Reporting by Jeff Lewis; editing by Jason Neely, Kirsten
Donovan)
 ((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))