TORONTO (miningweekly.com) – BHP Billiton would prefer to market its own production, but the company will honour agreements already in place with partners in potash marketing group Canpotex, if it is successful in acquiring Canada's Potash Corporation of Saskatchewan, CEO Marius Kloppers indicated on Wednesday.

Canpotex is the offshore marketing company for Canadian potash producers Potash Corp, Agrium and Mosaic, and negotiates contract pricing with key customers on behalf of the miners.

Potash Corp is the biggest contributor to sales volumes through Canpotex, with 54%, according to the company's website.

BHP proposed a friendly $130 a share offer for Potash Corp last week, but opted to launch a hostile bid after the Canadian firm's board rejected the approach as “grossly inadequate” and refused to enter negotiations.

The upshot of that is that BHP does not have any insight into the agreements and arrangements between the Canpotex partners.

“Our normal demeanour would be to take our own equity product, take our own marketing people and stand in front of our own customers, concluding contracts that reflect today's price every day,” Kloppers told journalists.

“But we will comply with the Canpotex arrangements.”

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.