A world mining giant with a significant presence in Saskatchewan is undergoing a major restructuring.
BHP Billiton Ltd., which is heavily invested in a potash project near Lanigan, plans to spin off its nickel, manganese and aluminum operations to form a new company that would have an estimated value of $8 billion.
The restructuring will allow the company to focus on its biggest earners, its iron ore, copper, coal and petroleum businesses.
BHP Billiton says prices for the elements it mines have diverged and it believes the fair thing for investors is to let them choose what they want to put their money into.
The company’s most important holdings in Canada include the Jansen potash project near Lanigan, to which BHP has committed $3.8 billion. Four years ago, BHP bought nearby Athabasca Potash for $320 million and Diamet Minerals for $426 million.
It’s too early to tell how the Canadian operations will be affected but the company's news release appears to lean towards continuing to invest in its Saskatchewan potash operations. Some reports says BHP may look at potash as a fifth major business line.
