BHP Billiton, which failed in its $39 billion bid for Canada's Potash Corp last year, said its Jansen potash project has moved into the feasibility study phase.

An environmental impact statement for the project in Canada was submitted in December and Wednesday's announcement is an advanced stage of the approvals process.

Record-high world food prices have fuelled a surge in demand for fertilizer products, a move that was highlighted by BHP's approach to Potash Corp last August.

Jansen is expected to start producing in 2015.