TORONTO (miningweekly.com) – The world's biggest miner, BHP Billiton, has approved $240-million for early-stage development of the Jansen potash project, in Saskatchewan, Canada.

The project is being designed to produce about eight-million tons a year of agricultural-grade potash, which will represent BHP Billiton's first production of the crop nutrient.

The money will go towards preparation work for production and service shafts, including the required ground freezing ahead of shaft sinking, and completing detailed engineering and equipment and materials commitments.

Shaft sinking will begin once full environmental permits are in place, which is targeted for mid-2011, the company said.

The Jansen project is in the final stages of a pre-feasibility study and is expected to move to feasibility phase in mid-2010, with a full investment decision expected in late 2011.

"The Jansen project is the first phase of what we expect to be our strong presence in the potash sector,” BHP Billiton diamonds and specialty products president Graham Kerr said in a statement.

“In conjunction with the Jansen project, we will continue to pursue other potash opportunities that fit within our portfolio of tier 1, long-life, export-oriented assets,” he added.

BHP Billiton is also working on two other greenfields potash projects in Saskatchewan, Boulder and Young, and advancing work on logistics and a port.

The group holds about 7 338 km2 under exploration lease in prospective areas of the Saskatchewan potash basin.