Cost of Jansen potash mine climbs again by more than $2B, BHP says

BHP Group has announced a significant increase in the projected cost for phase two of its Jansen potash mine project in southeastern Saskatchewan. The latest estimates place the total cost at US$6.9 billion, or CA$9.7 billion, a jump of more than US$2 billion from previous reports.

The company attributes the substantial price increase to additional construction expenses. These include the necessary worker hours and materials required to complete the second phase of the project. This follows a detailed review of the Jansen project, located in Jansen, Saskatchewan.

As of the end of last month, BHP reported that the project was 16 percent complete, with engineering at 83 percent. The company stated that this progress helps to "de-risk the estimate for remaining work." The expected output for the mine remains consistent, initially projected at 4.36 million tonnes per year for two years, before increasing to 8.5 million tonnes annually, representing 10 percent of global potash production.

BHP also noted that costs for the first stage of the project had previously risen in January, increasing from US$7.4 billion to US$8.4 billion. "Once Jansen Stage 2 ramps up, we continue to expect that the combined Jansen mine will be the lowest unit cost Canadian potash mine," BHP stated in its release.

“

Once Jansen Stage 2 ramps up, we continue to expect that the combined Jansen mine will be the lowest unit cost Canadian potash mine