Cargill Picks Global Transportation Hub
Cargill Canada has selected the Global Transportation Hub as the site for its announced canola processing facility in Regina. The facility, announced in April, is expected to begin production in 2024 with a production capacity of 1 million metric tons annually.
“The location of Cargill’s new facility will give canola farmers easy access for their deliveries and in turn, allow Cargill to efficiently deliver grain, oil and meal to end-use customers,” said Jeff Vassart, president of Cargill Canada in a release. “We see strong potential in the growth and competitiveness of the canola processing industry and look forward to helping farmers access the increasing market demand.”
Deal Confirmed with BHP and Westshore Terminals
Westshore Terminals announced on August 17 that its agreement with BHP will proceed upon BHP’s announcement that the long-awaited Jansen Potash project is a go. The Delta, B.C. based company will proceed on constructing the infrastructure to provide port services for BHP’s potash. The deal has Westshore handling services for BHP through 2051.
Provincial Credit Rating Stable
Saskatchewan’s credit rating remains at AA with a stable outlook, according to S&P Global Ratings said the Government of Saskatchewan on August 18, 2021. The report noted the province’s “is supported by what we view as the province’s strong financial management,” and that higher commodity prices coupled with the economy reopening should further advance the province’s economic rebound in 2021.
“All three major rating agencies have now updated their credit rating and outlook for Saskatchewan following the 2021-22 Budget, and we continue to have the second-highest overall credit rating among Canadian provinces,” Deputy Premier and Finance Minister Donna Harpauer said. “We are pleased that the major rating agencies continue to have confidence in our government’s fiscal and budgetary approach, despite the significant challenges posed by the global COVID-19 pandemic.”
Cervus Equipment Corporation has struck an acquisition deal with Regina’s Brandt Tractor Ltd. The deal sees Brandt purchasing Cervus at $19.50 per share in cash. This acquisition will create one of the world’s largest privately-held dealership groups, and the deal is expected to close in Q4 2021.
BHP announced this week the company will approve the construction of the Jansen Stage 1 potash project. BHP approved a $7.5 million CAD capital expenditure for the project, known as Jansen S1. It is expected to produce 4.35 million tonnes of potash annually, coming online with first ore in 2027. BHP anticipates the creation of 3,500 jobs during construction, and 600 permanent jobs once the mine is operational.
Next Week: CIBC presents Q3 2021 Results on August 26.
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