BHP approves US$4.9 billion investment in stage two of Jansen potash project

November 1, 2023

Mining giant BHP announced that it has increased its commitment to the Jansen potash project in Saskatchewan, Canada with a US$4.9 billion investment for stage two of the project. In August 2021 the company approved a $5.7 billion investment for stage one of the project which was preceded by an investment of $4.9 billion.

The company said stage two will advance its strategy to increase “its exposure to commodities positively leveraged to the global megatrends of population growth, urbanization, rising living standards and decarbonization. Potash, used in fertilizers, will be essential for food security and more sustainable farming.”

“This is an important milestone that underscores our confidence in potash and marks the next phase of the company’s growth in Canada,” BHP Chief Executive Officer, Mike Henry said in a statement. “We believe Jansen will deliver long-term value for shareholders and the local community, and will position BHP as one of the leaders in the global potash industry.”

The additional investment will transform Jansen into one of the world’s largest potash mines, doubling production capacity to approximately 8.5 Mt/a (9.4 million stpy).

“We are advancing our sustainability and economic development priorities for Jansen and we are pleased with the progress of our ongoing work with the governments of Canada and Saskatchewan, as well as local and Indigenous communities on shared solutions,” Henry said.

Jansen Stage 1 is 32 percent complete and progressing in line with its schedule. First production from Jansen Stage 1 is expected to be delivered in late CY2026. Construction of Jansen Stage 2 is anticipated to take approximately six years, and is expected to deliver first production in FY2029, followed by a ramp up period of three years.

Jansen Stage 2 is expected to deliver approximately 4.36 Mt/a (4/8 million stpy) of production at a capital intensity of approximately US$1,050/t, lower than Jansen Stage 1, due to the leveraging of existing and planned infrastructure2. In October 2022, BHP approved an initial funding commitment of US$188 million to procure long lead equipment and commence process plant foundation works. The additional US$4.9 billion investment for Jansen Stage 2 will be used for the development of additional mining districts, completion of the second shaft hoist infrastructure to handle higher mining volumes, expansion of processing facilities and the addition of more rail cars.

Westshore Terminals, in Delta, British Columbia, remains BHP’s main port facility to ship potash from Jansen to customers. The Jansen Stage 2 investment includes funding to increase storage facilities at the port. BHP will not be initiating a formal capacity extension for the Westshore port terminal at this time and will evaluate closer to Jansen Stage 2 reaching first production.

Jansen has been designed with a focus on social value and sustainability and is expected to have approximately 50 percent less operational (Scopes 1 and 2) greenhouse gas emissions per tonne of product and use up to 60 percent less fresh water when compared to the average potash mine in Saskatchewan. Indigenous employee representation at Jansen has increased to approximately 9 percent with a target to increase Indigenous employee representation at Jansen to 20 percent. Jansen aspires to maintain a gender balanced workforce.



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