BHP Group (ASX:BHP) will invest AU$10.6 billion in the Jansen potash mine in Saskatchewan, Canada, as the company seeks to reduce its reliance on iron ore, according to a Wednesday report by Nikkei Asia.
The move comes after BHP's half-year revenue fell 8% to $25.2 billion, largely due to a 20% drop in iron ore prices, which account for about half of its sales. Analysts expect further price declines as Chinese demand plateaus, the report said.
The company targets an annual production of 8.5 million tonnes at Jansen by 2030, the report added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.