BHP’s not-yet-final plan for a mine near Jansen, Saskatchewan, that would produce 8 million tonnes annually, would change the global supply and demand picture so dramatically that Russia-based Uralkali would rein in its own expansion plans if BHP goes ahead, Chief Executive Vladislav Baumgertner said in an email exchange with Reuters this week.
Uralkali is the second major potash producer in a week to highlight BHP’s decision as pivotal to its own expansion plans, as miners aim to avoid a glut of the pink or white crop nutrient, which is produced mainly in Canada and Russia.
U.S.-based producer Mosaic Co told Reuters last week that it would reconsider a decision to shelve its Canadian potash expansion if BHP scuttles Jansen.