bhp potash

Gotta be good for the sector - see below from reuters

(By the way - 50% retracement is done. Now lets get on with it!)

(In U.S. dollars, unless noted)
By Cameron French
TORONTO, June 10 (Reuters) - BHP Billiton is hoping
for big things from its portfolio of potash properties in the
Canadian prairies, the head of the company's special projects
group said on Tuesday, although he said it was too early to say
when it might decide to build a mine.
The appeal of the industry for BHP and other mining companies
has soared recently in tandem with world prices for potash, which
have tripled in some cases over the past year. Demand for the
fertilizer has jumped along with grain prices.
Speaking at a mining conference in Toronto, BHP's Graham Kerr
said the company planned to use its financial might and personnel
resources to get into an industry that is typically tough to
crack due to the huge costs and long lead times of building deep
potash mines.
"We see potash as a highly attractive industry," he said.
"Across Manitoba and Saskatchewan, we will pursue multiple
projects over the course of the next few years."
Meanwhile, world supplies of potash have been tight as years
of relatively stagnant prices made producers reluctant to start
new mines.
Potash is currently mined only in 12 countries, and producers
are essentially sold out at a time when farmers are willing and
able to pay as much as $1,000 per tonne, more than triple last
year's going price.
BHP made the decision to get into the business two years ago,
and now has more than 7,000 square kilometers (2,700 square
miles) of exploration property in the provinces of Saskatchewan
and Manitoba.
In May, BHP launched a C$284 million bid for Anglo Potash Ltd
to gain full control of an exploration joint venture.
Kerr said the company plans to do extensive seismic surveying
and will drill 21 holes over the next year on properties it has
identified as high-priority.
"It's probably too early to talk about timing (on a decision
on mine construction)," he said.
If and when BHP decides to build a mine, it would represent
the world's first new potash mine in more than 20 years.
The industry is currently dominated by Saskatchewan's Potash
Corp. , whose stock has nearly tripled over the past year.
Kerr was also asked if BHP might consider a partnership with
Canpotex, which markets and distributes potash on behalf of
Saskatchewan producers Potash Corp , Agrium Inc
and Mosaic Co .
"I guess at the early stage of the project, nothing's
certainly out of the cards or off the table," he said.
"We certainly though do think we have a competitive advantage
in terms of marketing logistics."
($1=$1.02 Canadian)
(Additional reporting by Roberta Rampton; Editing by Frank
McGurty)
(([email protected]; 416-941-8199: Reuters
Messaging: [email protected]))
Keywords: BHPBILLITON/POTASH


Wednesday 11 June 2008 07:03:19 AEST