BHP (ASX:BHP) has endorsed chief executive Mike Henry's personal relationship with the chief executive of Canadian National (CN) Railway, Tracy Robinson, The Australian Financial Review (AFR) reported.
Henry, who separated from his ex-wife two years ago, is romantically involved with Robinson, whose Canadian logistics company is building a 47-kilometre railway to connect BHP’s Jansen potash mine to CN’s existing rail network in Saskatchewan.
In August 2021, BHP announced a US$5.7 billion (A$8.5 billion) investment to build a “first stage” mine at Jansen capable of producing 4.35 million tonnes of potash annually.
Transportation solution
BHP had been in talks with CN and rival rail provider Canadian Pacific (CP) for more than two years on how best to transport potash from Jansen to Canada's western ports, covering 1,700 kilometres.
BHP plans to build and own a 7-kilometre rail spur next to the mine, which railway providers such as CN and CP will be able to connect to if they want to become a haulage provider to Jansen.
CN won approval from the Canadian Transportation Agency to become BHP’s primary haulage provider in July.
Conflict of interest measures in place
BHP chairman Ken MacKenzie told AFR that conflict-of-interest measures were put in place following Henry's disclosure of his relationship with Robinson.
“Mike Henry advised the board of his relationship with Tracy Robinson some months ago, at the outset of the relationship, and appropriate conflict-of-interest controls were put in place,” he said.
Henry, a native of British Columbia, Canada, has reportedly attended events in Canada with Robinson.
He is set to mark four years as BHP's chief executive on January 1.
BHP CEO Mike Henry.
Fostering competition
BHP remains open to collaborating with CP for Jansen's potash transportation.
Following a US$4.9 billion (A$7.7 billion) investment in October for Jansen's second stage, BHP hinted at connecting to multiple railways.
CP’s network lies approximately 12 kilometres from Jansen.
First production in 2026
Construction of the first phase of the Jansen mine is 32% complete, with initial potash production by late 2026 and by June 2029 after the second phase is completed.
BHP's total expenditure at Jansen is expected to reach US$15 billion, inclusive of the US$4.5 billion spent on shafts from 2013 to 2021 and the US$5.7 billion for the first phase.