BHP Group is in talks with Nutrien about a potential partnership...

BHP Group is in talks with Nutrien about a potential partnership in its massive Canadian potash venture as the world’s biggest mining company moves closer to a final decision on the project.

There is no guarantee the talks will lead to a deal, said the people, who asked not to be identified as the discussions are private.BHP has struggled with the Jansen project for years. Despite already spending about $US4.5 billion and digging two 1000-metre deep shafts, the company has yet to approve its construction and has faced shareholder opposition, including from Elliott Investment Management. Still, BHP’s board is set to make a final decision in the coming months.The miner has repeatedly said it’s open to bringing a partner into the project, especially one with expertise in the fertiliser market or potash. While that’s a product it currently doesn’t mine, BHP sees potash as a potential cornerstone of its future business.

“We continue to like potash. We think the long-term demand and supply fundamentals for potash are attractive,” BHP chief executive officer Mike Henry said at a conference last week when asked about the project. “We’ve always said we’re open to partnering, but the project doesn’t need a partner to proceed.”.RELATEDPotash peace pipe as Nutrien praises BHP’s ‘discipline’.

The company -- formed in 2018 from the merger of two large Canadian agriculture firms, Potash Corp. of Saskatchewan and Agrium -- said this month that the market could cope with the tons from Jansen if mined in a “disciplined” way.BHP, which tried to buy Potash Corp. in 2010, is expected to decide in the next few months on whether to approve a further $US5.7 billion in spending to bring Jansen into production.

Bloomberg (exerpts from AFR)