A Vancouver company wants to make a US$2.8 billion bid to join Canada’s world-renowned potash industry.
Vancouver-based Potash One Inc. (TSX:KCL) released a feasibility study Thursday for its Legacy project located 80 kilometres outside of Regina.
The study estimates a 47-year mine life that would produce 2.86 million tonnes of potash a year, a commodity primarily used to make fertilizer. The cost to put the project into production is approximately US$2.8 billion.
Legacy, which would be the first new potash mine in Saskatchewan since 1971.
Legacy could be compared with global mining giant BHP Billiton Ltd.’s (NYSE:BHP) proposed Jansen project, which if built would be located 140 kilometres east of Saskatoon.
It is believed that Jansen would cost approximately $12 billion to build and produce eight million tonnes of saleable potash per year over a 50-year mine life.
Potash One’s Legacy project comes amid BHP’s proposed US$40 billion hostile takeover bid for Potash Corp. of Saskatchewan Ltd. (TSX:POT), which is currently subject to a number of political hurdles.
Potash One’s shares were down 2% to $3.43 at press time.