Doubt over BHP potash

ACTIVIST hedge fund Elliott Management says BHP’s plans to approve a potash project worth almost $6 billion in Canada are alarming.

Potash, Elliott says, could be “the next shale” – a reference to the miner’s costly investment in the US shale market.

In a statement, the New York-based hedge fund says it has serious reservations about the $US4.7 billion ($5.9 billion) potash project in the Canadian province of Saskatchewan.

“This sounds alarmingly familiar and comes as the company proclaims the dubious strategy of ‘thinking big’ – a concept that has been disastrous for BHP shareholders,” an Elliott spokesman said in a statement.

Potash, a nutrient in plant growth, is a key ingredient in fertiliser.