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Just a month after BHP announced its Jansen Potash mine project would face delays and a price increase, it’s now facing even more setbacks.
Stage 2 of the multi-billion-dollar project southeast of Saskatoon is now being pushed two years down the road, according to the company’s annual report.
This shifts production back from 2029 to 2031.
According to the report, Stage 2 is only 11 per cent complete.
Read more:
- Jansen potash mine delayed, BHP cites rising costs
- BHP commits $6.4 billion to Jansen potash mine
- WATCH: Tour a Potash Mine with 980 CJME!
In July, the company announced that Stage 1 of the mine site would be pushed back to mid-2027, rather than its original completion goal of 2026.
The company also flagged a cost overrun of up to $1.7 billion, raising the projected total cost of the $5.7 billion project to somewhere between $7 and $7.4 billion.
“The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period,” BHP said in the company’s annual report.
As of now, Stage 1 sits at 68 per cent complete.
As for Stage 2’s capital expenditure, according to the company, it remains under review, with a capital expenditure estimate planned for the second half of 2026.
“In FY2026 (fiscal year), underground and surface construction works will continue, including structural, mechanical and electrical activities for the dry and wet mill areas,” it said.
The Stage 2 expansion is expected to double the mine’s production capacity to approximately 8.5 million tonnes annually.
The Jansen mine is a cornerstone of BHP’s efforts to diversify beyond copper and iron ore, aiming to become the world’s largest potash operation.
Read more:
- Jansen potash mine delayed, BHP cites rising costs
- BHP commits $6.4 billion to Jansen potash mine
- WATCH: Tour a Potash Mine with 980 CJME!
NDP critisizes Sask. Party over delay
The Saskatchewan NDP released a statement, calling out the Sask. Party government after Stage 2 of the Jansen Mine project faces another delay.
NDP’s Finance Minister Trent Wotherspoon said the mine is critical to the province’s economic future.
“It will be a major boost to our province, and we all want to see it succeed and want to see these good, mortgage-paying jobs for generations,” Wotherspoon said.
“Unfortunately, this isn’t the first major project to take a hit under the Sask. Party’s watch.”
The NDP demand answers from Premier Scott Moe on the project’s delays.
More to come
