BHP Group feels safe about Anglo American’s bid for Sirius Minerals
BHP Group CEO Mike Henry said that Anglo American’s deal to acquire Sirius Minerals would not cause any problems to his company. Previously, there were concerns about a possible oversaturation of the global potash fertilizer market, since, having received Sirius Minerals, Anglo American will be able to complete its construction of the Woodsmith mine.
After commissioning Woodsmith, it would be producing Poly4 – Polyhalite-based mineral fertilizer. It has already been nicknamed “Potassium chloride killer” for its valuable agricultural properties. Consequently, there were strong suspicions that Sirius mine would become a competitor to the Jansen potash project implemented by the BHP Group over the years.
“There’s no change in our views on Jansen or potash. We like the commodity.” confirmed Mike Henry.
Mr Henry said he would decide by February next year whether to seek final approval from the BHP Group board of directors for further implementation of the Jansen project or not. To bring Jensen into production of potassium chloride, BHP would need to invest at least a further $ 5 billion or find a strategic partner to help finance part of the investment.
Source: Financial Times