BHP Group Ltd., a global metal mining company, has announced its approval of a $4.9 billion investment in stage two of the Jansen potash project in Saskatchewan, Canada. This move is expected to double the production capacity of the mine, making it one of the largest potash mines in the world. The company plans to increase production to approximately 8.5 million tons per annum.
Currently, Jansen Stage 1 is already 32 percent complete and is slated to be completed by late 2026. The construction of the second stage of the project is estimated to take around six years, with the first production expected in fiscal 2029 after a three-year ramp-up period. This second stage is projected to deliver approximately 4.36 million tons per annum of production, at a capital intensity of about $1,050 per ton, which is lower than Jansen Stage 1.
BHP previously invested $5.7 billion for Stage 1 of the Jansen project in August 2021, in addition to a pre-Jansen Stage 1 investment of $4.5 billion. The company’s decision to invest further in this project demonstrates its confidence in the potential of the Jansen potash mine.
In pre-market activity, BHP shares are currently trading at $57.04, reflecting a decrease of 0.89% on the New York Stock Exchange.
Overall, BHP’s investment in the Jansen potash project marks a significant step in the company’s expansion plans. With the doubling of production capacity, BHP aims to solidify its position in the global potash market and meet the increasing demand for this essential mineral.
