World’s biggest potash producer Nutrien considers expansion amid BHP speculation
Nutrien, the world’s biggest producer of potash fertiliser, has revealed it is evaluating whether to expand its production capacity by five million tonnes from 2023, in response to BHP’s proposed move into potash.
Chuck Magro, Chief Executive of Canada’s Nutrien, addressed investors in Toronto this week and revealed that additional capacity would be driven by expansions to existing Canadian mines over the next decade.
Nutrien have stated that this approach would take the company’s annual operational operational potash capability to 18 million tonnes. It could then be in a position to add a further five million tonnes following that.
Demand for potash, a key nutrient for sugarcane and corn, has risen steadily across the globe, particularly in Brazil and Asia.
BHP has already sunk shafts for its first potash mine at Jansen, Saskatchewan, but its board has not yet committed the bulk of the capital required for the five-year construction phase needed before production can begin.
Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. It produces and distributes 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and its leading agriculture retail network, it is well positioned to supply the needs of a diverse range of customers.
Nutrien operates with a long-term view and is committed to working with its stakeholders to address its economic, environmental and social priorities. The scale and diversity of Nutrien’s integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.