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Global mining giant BHP says the second phase of its Jansen potash mine is expected to cost 40 per cent more than previously expected.
The Australia-based company says it now estimates a price tag of $6.9 billion US, up from the $4.9 billion US it had anticipated when it was approved in 2023.
BHP is expecting first production in late 2031, later than its original expected startup date of 2029, from the mine east of Saskatoon.
It said the two-year extension, announced in August of last year, has allowed the mining company to review its cost and schedule estimates.
BHP said that once Jansen Stage 2 ramps up, it expects it to have the lowest unit costs among Canadian miners of potash, a high-demand mineral used as a fertilizer.
At the end of May, Jansen Stage 2 was 16 per cent complete, with engineering 83 per cent complete.
“With the reset of Jansen Stage 2, we are progressing with our intention of building a Tier 1 asset,” said Brandon Craig, BHP’s president for Americas and CEO-elect.
“The combined Jansen Stage 1 and 2 will be a low cost, long life asset with almost 60 year mine life and is expected to generate benefits for shareholders for decades. Once operational, Jansen will establish BHP as a leading player in the global potash industry.”