Australian mining leader BHP Billiton may just make a second bid for the Potash Corporation of Canada. The world's largest fertilizer producer earlier considered the BHP's unsolicited bid of $38 billion to be "grossly inadequate."

The Saskatchewan-based corporation declined BHP's offer of $130 a share in cash and is taking steps to prevent a takeover by a foreign party. Potash will soon adopt measures allowing ordinary shareholders to buy more shares cheaply in order to make it difficult for an outside party to build up a single stake in the company of at least 20 percent..

In spite of the rejection, MineLife senior resource analyst Gavin Wendt expects BHP Billiton to make a revised, higher offer for the fertilizer company. Wendt sees BHP's bid for a stake in the predicted agricultural boom to be serious after the mining firm recently paid $US320 million for Athabasca Potash, a fertilizer company also based in Saskatchewan.

Wendt further explained that BHP values the potential of potash to become in great demand as the worldwide population increases. He said population growth will increase the demand for food which, in the long run, will spur the need to enhance food production. Utilizing fertilizers such as potash and phosphates is the most effective means to meet an increasing food demand.