REGINA - BHP Billiton said Wednesday it has moved its Jansen potash project in Saskatchewan into the feasibility study phase.

BHP, which tried and failed to buy Saskatchewan's PotashCorp (TSX:POT) last year, said it has submitted an environmental impact statement for the proposed mine, about 140 kilometres east of Saskatoon.

The Jansen project and its status was a key point of dispute between BHP and PotashCorp during the takeover fight. PotashCorp had questioned BHP's commitment to develop the project if it were successful in acquiring the Saskatoon-based company.

BHP announced in January that it would spend $240 million developing the project, including ground freezing to allow shaft sinking as well as completing detailed engineering, equipment and materials commitments.

BHP has exploration rights to over 14,500 square kilometres in Saskatchewan.