BHP Billiton (ASX: BHP) says its Jansen potash project has progressed into the feasibility study phase, an advanced stage of the company's project approvals process. This decision further highlights the group's ongoing commitment to the project, the province of Saskatchewan and Canada, the resource giant said.

BHP Billiton submitted the environmental impact statement (EIS) for the proposed project to the Saskatchewan Ministry of Environment December last year.In January 2010, it allotted pre-commitment funding of US$240 million to support the early development of Jansen. The company said it has commenced drilling and site preparation for the ground freezing process that is required prior to the sinking of the production and service shafts.

"Based on the current schedule, Jansen is expected to start producing saleable potash from its 3,370 million tonne in-situ Mineral Resource in calendar year 2015," BHP said.

"The Project is designed to produce approximately 8 million tonnes per annum of agricultural grade potash over an estimated 70 year life."

Graham Kerr, President of BHP Billiton Diamonds and Specialty Products, said: "We are very pleased to announce that Jansen has now moved into the next phase of its development. The Jansen Project has the potential to become one of the world's premier potash mines and the platform for a significant and scalable potash business for BHP Billiton."

He added: "BHP Billiton's strategy is to develop and safely operate large, long-life, low-cost assets and we continue to make progress at our Boulder, Young, Burr and Melville sites. We look forward to continuing to work on our growth projects with our Canadian suppliers and host communities as we seek to build a significant presence in Saskatchewan."