Another checkbox ticked moves BHP closer to developing its newest resource…
The post BHP (ASX:BHP) share price lifts amid news $7.5b project will proceed appeared first on The Motley Fool Australia. –
The BHP Group Ltd (ASX: BHP) share price is climbing higher today as the company moves one step closer towards making its Jansen potash mine a reality.
At the time of writing, shares in the diversified resource miner are up 1.58% to $52.08. The BHP share price is now 39% above where it was a year ago.
Port facilities agreement for new mine
Reports in The Australian reveal BHP is likely set to proceed with its Jansen potash development in Saskatchewan Canada. This follows news the mining giant has secured a conditional port services deal with Westshore Terminals.
According to earlier news, the agreement remains conditional on BHP advancing to its first phase for Jansen. It is estimated that these initial phases could cost up to $5.7 billion.
If the project goes ahead Westshore will be responsible for handling the potash for BHP up to the year 2051, subject to extension.
Interestingly, the Jansen potash project will be the company’s first new resource in more than a decade. BHP has been investigating the prospects of potash since 2006. Back then the BHP share price was bouncing between $22 to $28 a share.
In a presentation last month, the company discussed the compelling case for the resource. A combination of population growth, a shift to plant-based diets, and a need for increased crop yields are all attractive catalysts for potash, according to BHP.
Additionally, its recent quarterly results showed the company on track for a ‘go or no-go’ decision in the next two months for Jansen stage 1. Nearly US$3 billion has already been sunk into the project to get it to this point.
BHP share price snapshot
The BHP share price has been enjoying the prolonged iron ore boom. Over the past year, the company has added 39% to its value — now commanding a market capitalisation of $238.5 billion.
Should you invest $1,000 in BHP Group right now?
Before you consider BHP Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP Group wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Here’s why the BHP (ASX:BHP) share price is up almost 10% in a month
ASX 200 Weekly Wrap: Just like that… ASX back to record highs
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.