Global mining company BHP has revised the cost estimate for the initial phase of its Jansen potash project in Saskatchewan, now projecting it to reach $8.4 billion US. The Australia-based firm disclosed this update following a comprehensive assessment of the project’s budget and timeline. This figure represents an increase from the previously anticipated cost range of $7 billion US to $7.4 billion US by July 2025.
Originally greenlit in August 2021, the Jansen project was initially forecasted to cost $5.7 billion US. Brandon Craig, president of BHP’s Americas division, expressed optimism about the advancements at Jansen and the promising outlook for potash as a crucial resource amidst growing global demands driven by factors such as population growth and sustainable agricultural practices.
The recent escalation in costs can be attributed to overlooked construction hours and material quantities that were absent from prior budget evaluations, as highlighted during the recent review. BHP reported that the first phase of the Jansen mine is currently 75% completed and is anticipated to yield approximately 4.15 million tonnes of fertilizer annually. Production commencement at the site is slated for mid-2027.
