BHP (ASX:BHP) share price lifts amid news $7.5b project will proceed

Another checkbox ticked moves BHP closer to developing its newest resource…

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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.

More recently, a nickel supply agreement with Tesla Inc (NASDAQ: TSLA) has pushed shares in the mining company even higher.

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