SASKATOON -- BHP has announced it will pour billions of dollars into a potash mine southeast of Saskatoon.
On Tuesday, the Australian firm said it has approved $7.5 billion in spending for its Jansen potash mine.
The mine has been in the works for a decade but a sluggish potash market had stalled the project.
"This is an important milestone for BHP and an investment in a new commodity that we believe will create value for shareholders for generations," the firm's CEO Mike Henry said in a news release.
The Jansen Stage 1 project is expected to produce 4.5 million tonnes of potash a year, according to the company.
The community of Jansen is located roughly 150 kilometres from Saskatoon.
Premier Scott Moe was beaming during a news conference held in Regina Tuesday morning.
"While we were all sleeping last night one of the largest mining companies in the world approved one of the largest projects in their history, " Moe said, desribing the project as the "largest private economic investment" in Saskatchewan history.
"It certainly isn't every day in Saskatchewan or anywhere else where we have the opportunity to announce a new mine in the province, certainly not one the size and scope of what we are announcing here today," Moe said.
The province estimates the project will create around 3,500 jobs annually during construction and and provide direct employment for 600 workers once it is up and running.
Construction is expected to take six years, followed by a two-year "ramp-up" period.
The mine could operate for up to a century, according to BHP.
According to the company, it has already epent over $5.6 billion on the project over the years, describing the cost as a "significant initial outlay."
The firm said its approach would be different if considering the project again today.
As it shared news of its multi-billion dollar bet on the Saskatchewan mine, the firm also announced it would spin off its petroleum business.
"Our petroleum and Jansen decisions will increase the weighting of BHP’s remaining portfolio towards the future facing commodities that are most positively leveraged towards population growth, rising living standards, electrification and decarbonisation," Henry said in a note to shareholders.
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BHP bets billions on Saskatchewan potash mine - CTV Toronto
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