TORONTO (miningweekly.com) - There is no way to get around the strategic concerns regarding the sale of Potash Corp to BHP Billiton, Saskatchewan Premier Brad Wall said on Friday.

Saskatchewan announced its formal opposition to the deal last week, and has been lobbying the government to block the deal. Wall has also received expressions of support from the leaders of at least three other provinces - Alberta, Manitoba and Quebec.

Even though BHP has offered to find ways to avoid revenue loss to the province, Wall says he is not prepared to take a chance that promises may be broken down the road.

But even more adamantly, he maintains that the huge potash resources controlled by Potash Corp are a strategic asset to Canada that should not be sold to a foreign buyer.

"This is more important going forward for the country maybe than it ever has been, because the world is prizing food security and energy security and we do have a prolific supply of the answers to those questions," he told reporters after a speech in Toronto.

"Isn't it time that maybe we got a little bit circumspect about deals that involve this size of reserve and this size of a company?"

ALL OPTIONS

The provincial government will look at "all options" if the federal government of Canada allows BHP Billiton to proceed with its hostile takeover offer for Potash Corp of Saskatchewan, Wall said.

"If the deal is forced we'd have to look at all of our options, we have got to make sure that we are keeping our revenues whole in terms of royalties.

"We're out C$3- to C$6-billion, depending on the production model they [BHP Billiton] use," he said.

"And that means - without some action - deficit budgets, tax hikes and programme cuts. We don't want to do any of those things."

Wall said earlier that Manitoba Premier Greg Selinger has expressed support for Saskatchewan's stance on the Potash offer.

The premiers of two other Canadian provinces, Alberta and Quebec, have also backed Wall's opposition to the takeover.

STILL OPEN FOR BUSINESS

Numerous commentators, including the Conference Board of Canada in a report commissioned by Saskatchewan, have warned that Canada and Saskatchewan risk sending a negative message about the investment climate.

Speaking at an event hosted by the Economic Club of Canada, Wall repeated a number of times that saying 'no' to the BHP bid does not mean Saskatchewan is not open to investment.

He also argued that the province should have a bigger say in the final decision, which at the moment rests with Industry Minister Tony Clement.

"This is very much about natural resources, the province needs to be listened to," Wall said.

Clement is expected to announce by November 3 whether the BHP offer for Potash Corp passes the 'net benefit' test under the Investment Canada Act.

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