SASKATOON - Global mining giant BHP has announced a substantial increase in the estimated costs for the second phase of its Jansen potash mine. The Australia-based company now forecasts the total cost to reach approximately US$6.9 billion, marking a 40 percent rise from the previous estimate of US$4.9 billion, which was established at the time the project was approved in 2023.

The timeline for the project also sees a shift, with BHP now anticipating first production from the mine, located east of Saskatoon, in late 2031. This extends the original startup date from 2029, a change attributed to the two-year extension announced in August of the previous year. This extension has provided BHP with the opportunity to conduct a thorough review of its cost and schedule estimates.

BHP expresses confidence that once Jansen Stage 2 reaches full capacity, it will achieve the lowest unit costs among Canadian potash miners. Potash is a crucial mineral utilized primarily as a fertilizer, making its production significant in the agricultural sector. As of the end of May, Jansen Stage 2 was reported to be 16 percent complete, with engineering aspects of the project reaching 83 percent completion.

Brandon Craig, BHP's president for the Americas and CEO-elect, stated, “With the reset of Jansen Stage 2, we are progressing with our intention of building a Tier 1 asset.” He further emphasized that the combined production from Jansen Stage 1 and Stage 2 will result in a low-cost and long-life asset, boasting an anticipated mine life of almost 60 years. Craig added that the project is expected to yield benefits for shareholders for decades, positioning BHP as a leading contender in the global potash market.

This report reflects current developments regarding the Jansen potash project, highlighting BHP's commitment to creating a significant mine that will contribute to the company's growth and influence within the mining sector.