The mining giant wants to start production early in the future.
There is a potash mine in Canada. One of the largest potash mines in the world will be ramping up production.
The photo was taken by the person.
The company said Tuesday that it intends to speed up future expansions as potash prices continue to rise, and that it is working to accelerate first production by a year to 2026.
The Australian mining giant reported in its year-end operational review that work on the Jansen's shaft was finished in June at a total cost of US$2.97 billion.
One of the largest potash mines in the world is expected to be created by the Jansen mine, which will initially produce 4.35 million tonnes of potash per year. The mine has been under development for years, but only committed to completion in 2021, when CEO Mike Henry changed the company's portfolio towards "future-facing" commodities such as potash, a fertilizers that could be used to feed a growing world population.
In an interview with the Financial Post in 2020, Henry said that he had made it clear to the company that it needed to increase its exposure to future-facing commodities.
At that point, the company had already invested billions of dollars in the project, but Henry insisted that they were prepared to walk away.
In August of last year, the company committed to funding all of the first phase. According to the operational review, the project is only eight per cent complete, but that it is working to accelerate the timetable for first production.
The company decided to put its capital into potash after selling its petroleum business.
The chief financial officer said at the conference that the company was replacing its business with potash.
Each of the four stages at the Jansen mine can produce around 4 million tonnes of potash a year. If potash prices fell 50 per cent, we would be generating around US$4 to US$5 billion of earnings per year. Our business averaged US$3 billion per annum over the last five years.
Five per cent of the company's earnings were attributed to petroleum.
Potash prices have gone up as a result of the spike in oil prices. Western sanctions against Russia and Belarus, which account for 38.6 per cent of world potash production, pre-date the latest conflict and had already disrupted the globalfertilizer market, were worsened by the conflict.
In June, Ken Seitz, the interim chief executive of the world's largest potash producer, warned that a global food crisis was imminent.
Seitz said that the physical impact of the shortage will start to be felt over the next few months.
In June, the federal government made a $100 million commitment to help reduce greenhouse gas emissions.
It could operate for a century, according to the man.
He said at the conference that it has a path to become the next Western Australia Iron Ore or Escondida.
In addition to announcing that it is looking to begin production at Jansen in the year of 2026 rather than the year of 2027, the company also stated that it wants to accelerate the second phase of the project. It wasn't given a target date for that phase.
The company formed an alliance with a nickel exploration company in Canada.
The email is gfriedman@postmedia.
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