BHP's (NYSE:BHP) Taxes from Jansen Could Reach $90 Billion

The Jansen potash project owned by BHP (NYSE:BHP) in the Canadian province of Saskatchewan will pay an estimated $90 billion in taxes and royalties to various arms of governments in the country over the life of the resource, according to projections by the mining company.

That includes the entirety of the project, including workers wages being taxed and companies connected to the project.

Referring to short-term benefits of tax deductions related to the construction phase of the asset, BHP said, "BHP Billiton notes that in future years when Jansen starts to operate and such deductions have been utilised, the reverse occurs and the province receives more taxes than it would have otherwise."

This was in response to a report from the Conference Board Of Canada that in the beginning phase taxes would decrease.

But who cares? Too bad the majority of the earnings aren't retained by the company to create far more benefit via growth and earnings and the creation of something that has value, rather than ridiculous and wasteful government spending programs.

If for some reason their bid for Potash Corp. (NYSE:POT) is unsuccessful, BHP won't be in the potash game until full production is reached in 2021.