Decision Time Looms for BHP’s Jansen, as Investment Capital Dries Out

The Australian reported that, with capital dwindling,  BHP (NYSE:BHP) is facing growing pressure to make a development decision on their  Jansen project.

As quoted in the Australian report:

So the expectation is that rather than flash a big green light for Jansen, BHP is poised to at least provide another big lick of pre-approval capital that will keep Jansen on a development pathway leading to first production around 2017, and potentially a world-beating eight million a year of potash by 2025. Last month, Goldman Sachs reflected that expectation when it tipped BHP was close to pumping another $US500 million of pre-approval development capital into Jansen ahead of a decision in 2015-16. ‘;We believe that pre-approval capex will continue until the shaft (to access the potash at depths of 1km) has been completed,” Goldmans said. “Thus we see a strong likelihood of an additional $US500m of pre-approval capital being granted to the project in coming months, allowing a delay in the final approval of the project until 2015-16.

To view the whole Australian report, click here.