BHP commits $6.4 billion to Jansen potash mine

“This is an important milestone that underscores our confidence in potash and marks the next phase of the company’s growth in Canada,” CEO Mike Henry said in a release.

“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 announcement Tuesday follows BHP’s approval of $7.5 billion for the first stage of the project, which the company says is 32 per cent complete. First production remains on track to begin in late 2026.

BHP said construction of Stage 2 is anticipated to take approximately six years, and is expected to deliver its first production in 2029.

The expansion is expected to double the mine’s production capacity to approximately 8.5 million tonnes annually.

BHP said the mine has been designed with sustainability in mind, and is expected to produce about 50 per cent less operational greenhouse gas emissions than the typical Saskatchewan potash mine. Jansen is also expected to use about 60 per cent less fresh water than most potash mines.

In a social media post, Saskatchewan Premier Scott Moe celebrated the announcement.

“Great news this morning for Saskatchewan,” Moe wrote. “One of the biggest mining projects in the world just got bigger.”

Great news this morning for Saskatchewan! One of the biggest mining projects in the world just got bigger.

BHP just announced a $6.4 billion expansion to its Jansen project, bringing its total investment in this project to over $18 billion. The project is expected to create…

— Scott Moe (@PremierScottMoe) October 31, 2023