BHP CEO Mike Henry in Saskatoon, Sask., on June 13.Liam Richards/Photo Liam Richards
The federal government has committed $100-million to BHP Group Ltd.’s planned $400-million investment in technology designed to make its Jansen project in Saskatchewan the world’s greenest potash mine.
Two cabinet ministers – François-Philippe Champagne, Minister of Innovation, Science and Industry, and Marie-Claude Bibeau, Minister of Agriculture and Agri-Food – were in Saskatoon on Monday with BHP chief executive Mike Henry to announce the initiative. BHP is budgeting a total of $7.5-billion on the first stage of what will become the world’s largest potash mine. Mr. Henry called the project “a vote of confidence in Canada.”
BHP, backed by the government, is investing in technology such as electric underground mining equipment – rather than traditional diesel-powered gear. Government funding will also help pay for automation and technology that reduces water use and greenhouse gas emissions. Over a breakfast meeting on Monday, Prime Minister Justin Trudeau called the BHP team to express support for the project.
The Jansen mine is expected to begin producing potash in 2026. BHP forecasts its technology investments will cut the facility’s greenhouse gas emissions in half compared with comparable existing potash mines, and lower water consumption by 60 per cent against peers.
“BHP is the poster child for environmentally-friendly mining,” Mr. Champagne said in an interview. He said the government is in talks with other miners, including Rio Tinto Group on similar investments. He said: “We want Canada to be the green supplier of choice, as a producer of green steel, green aluminum and green batteries, along with green potash.”
Jansen, located 140 kilometres east of Saskatoon, is the first new underground potash mine built in Canada in 50 years. It is the single largest project ever undertaken by Melbourne, Australia-based BHP, and the company’s first potash mine.
BHP predicts demand for potash will increase in coming decades, owing to the need for fertilizer that feeds increasingly affluent consumers from less arable land. Ms. Bibeau said: “Our government’s investment in the world’s greenest potash mining facility will help our farmers feed a growing world population.”
Over the past year, BHP exited oil and gas – spinning out the business in a US$20-billion transaction – and announced plans to sell mines that produce coal for energy. Mr. Henry described strategy as “a pivot to future-facing commodities.” Along with potash, BHP is a major producer of copper, iron ore and metallurgical coal, which is used in steel making.
Mr. Champagne said providing subsidies to companies such as BHP is a cost of doing business and remaining competitive for new projects. He said every industrial nation features government programs that support innovation and transitioning to a green economy.
“We never win projects based entirely on money. We win based on our strength across the board, on talent, on stability,” Mr. Champagne said, pointing to a string of recent investments in Canada by foreign automakers and battery manufacturers. He said: “Canada is on an a roll.”
The first stage of the Jansen mine will employ 600 – Mr. Henry said 20 per cent of the work force will in Indigenous – and the project has a lifespan of at least 50 years.
Based on the size of the potash reserves, BHP forecast there could be four stages of development over the next 15 years. Mr. Champagne pushed the mining company to move quicker on the expansion. He said: “Let’s seize the moment. Let’s be ambitious.”
Along with Saskatchewan, Russia and Belarus have the world’s largest known potash reserves. Russia’s invasion of Ukraine prompted some countries to boycott exports from those two nations and pushed up potash prices. Looking ahead, Mr. Henry said Russia and Belarus may struggle to access the capital they need to develop new potash properties, while Saskatchewan will continue to be an attractive jurisdiction for miners.
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
