World's biggest mining company BHP Billiton finally made a major investment after vowing last year to curb expenditures and protect profits from sliding commodity prices. BHP Billiton invested in a significant potash deposit located in Jansen, Canada for USD2.6 million, betting that a rising trend will happen in the global food market, newspaper outfit The Wall Street Journal reported. Potash was described in the report as "a potassium-based fertilizer ingredient that strengthens plant roots."
The USD2.6 million investment was to be spread over a few years building the necessary production and service infrastructure. Potash deposits in Jansen were said to be richer than anywhere in the world for more than 50 years, with 10 million metric tons of potash produced in Jansen annually.
BHP was looking to expand to other profitable commodities in lieu of its profit drop second year straight. The mining company was said to be also responding to the commodity trend in China. BHP Billiton and other mining stocks have been affected as of late, with BHP sliding today to more than 1.5%, closing at AUD36.54. BHP is trading at the Australia Stock Exchange (ASE).
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