A report released by the Conference Board of Canada on Monday has stated that BHP Billiton Ltd's hostile takeover bid on Potash Corporation of Saskatchewan could potentially lead to some negative impacts for the host province and slash Canadian government earnings by as much as $2 billion for the next 10 years.

The report said that "with the exception of significant government revenue impacts, we found few negative takeover effects," as Saskatchewan Energy and Resources Minister Bill Boyd was quoted by AAP as saying that "the potential loss of revenue is of great concern."

Mr Boyd said that the projected revenues losses of billions of dollars were indeed serious risks as he added that "the people of Saskatchewan want us to look at this very carefully make sure there is a net benefit."

He said that a joint study by his ministry and the Saskatchewan government would be conducted while discussion with industry stakeholders would also be undertaken in hopes of forwarding a definitive recommendation to the federal government of Canada by the end of October.

The report came out following the decision by the Canadian government to further extend the review of the acquisition proposal by 30 days for more in-depth review as Mr Boyd admitted that risks were indeed present on the deal, which is poised to reduce Saskatchewan's yearly revenue by up to $US196 million for the next 10 years.

However, BHP said that while it is still analysing the reports, it maintained that its takeover proposal for Potash Corp would deliver net benefits for both Saskatchewan and Canada.

On the other hand, the same report said that the mining giant's proposal is much preferred than that of the rival bid of China-owned Sinochem, stressing that "a producer that is unhinged from market discipline could potentially wreak havoc on Saskatchewan's finances."

The report noted that "potash is critical to China's food needs and therefore there may be a tendency for the state to 'subsidise' food through cheap inputs like potash."

Mr Boyd confirmed that the Chinese bid for Potash Corp was not aligned with the interests of both buyers and sellers of potash as he pointed to the report's assertions that the BHP Billiton proposal would most likely win the nod as it cautioned Saskatchewan from formally opposing the acquisition bid.