BHP Pockets Tentative Potash Sales Deals for Canadian Operations, Declines Interest In Cobre Panama: Report

BHP Group Limited BHP has reportedly inked a non-binding sales agreement for all potash production from both phases of the Canadian mine, which is currently under construction.

The mining company aims to convert those mines into firm offtakes within 12-18 months, reported Reuters.

As per the report, Australia-based BHP’s Chief Commercial Officer Ragnar Udd said the company is not interested in acquiring the idled Cobre Panama copper mine from First Quantum Minerals Ltd. FQVLF.

BHP expects to begin production at Jansen, Saskatchewan, in late 2026, whihc is projected to ramp up to 4.35 million metric tons annually. Moreover, a second phase approved by BHP will enhance yearly output to 8.5 million tons, growing global supply by roughly 10%, per the report.

Udd said that BHP plans to sell potash to distributors rather than directly to companies that re-sell the fertilizer to farmers and it will turn tentative sales into binding contracts (typically lasting one year) when production comes online, with the first likely in late 2025 or early 2026.

Last month, BHP initiated a significant restructuring of its global operations. The company is starting in Australia, facing a nickel market slowdown, which could extend into 2030.

Price Action: BHP shares are trading lower by 0.56% at $58.01 on the last check Monday.