After a report that BHP Billiton could delay it's Jansen Lake mine project, there are questions about the economic future of the potash industry in Saskatchewan.

The article in the Sydney Morning Herald, an Australian newspaper, sent shockwaves across Saskatchewan. It suggested the Jansen mine would be BHP Billiton's first project to be delayed should economic conditions take a turn for the worse.

Chris Ryder, from BHP, was quick to deny the report Tuesday. ""There is no validity; it's purely speculation by some of the investment community that was there."

The Australian paper got the information from a presentation by BHP senior management. However, BHP says that wasn't the intent of the presentation.

"Marius was just going through some of the various projects' characteristics and trying to give some insight into the complexity of our capital allocations. I can tell you that our plans for Jansen haven't changed. We are still as excited as we ever were," says Ryder.

But not everyone believes the article should be so easily dismissed. Colin Boyd, a professor of management at the University of Saskatchewan says everything is speculation at this point, but the fact that the BHP board hasn't given final approval to the project means a delay is possible.

"BHP having failed to take over PotashCorp may be setting up Jansen to sell to someone else, so it's their analysis that will tell them if it's better for them to pause, sell it to someone else, or keep going full blast," says Boyd.

Boyd says adding to the volatility is the supply outlook for potash. While the long term market looks good, Boyd says if all the recent announcements go ahead, supply will increase by 38 per cent. He thinks that may flood the market from 2015 to 2020. "I think you'll hear some other companies say that they are either suspending, or that they are putting off expenditures based on the fact that there may be overcapacity by 2015."

Despite these concerns, BHP says they're confident in the potash market and they're going full steam ahead with the Jansen project. They plan to start production at the Jansen mine in 2015.