BHP Jansen project delay might offer relief for communities

The delay of the BHP’s Jansen potash mine project comes as a significant but not surprising development, according to 980 CJME’s business analyst, Paul Martin.

Martin even said the delay could serve as good news for nearby communities.

“Capital markets are challenging, and so you’ve got a project of this size, the fact that things change along the way is not surprising because it’s quite a long construction period,” he said.

According to BHP’s annual report, Stage 1 of the project is being pushed from 2026 to mid-2027, while Stage 2 is being rescheduled for 2031 instead of 2029.

Martin said the setback might not sound good from a provincial perspective, but the construction and capital flowing in can now do so over an extended period of time.

“It makes it just a little bit easier for communities–say Humboldt or Lanigan–to be able to cope with the influx of people that’s coming in and the volume of services that have to be delivered,” Martin said.

‘Status quo for us’

Mayor Tony Mycock of Lanigan said the pushback won’t change much for the community, which he said is roughly 20 minutes east of the mine site.

Mycock agreed that it could even be beneficial to Lanigan’s preparation for the coming influx of people, though Mycock said many locals are already working on the site.

“We’re really pushing housing initiatives and development and getting more properties built–houses and rental properties,” he said.

“We’re in the process of building a new daycare right now, because there’s a need for it. So really, it’s status quo for us. It doesn’t change anything.”

In the long run, Mycock said he believes the project will help bolster the community, which is seeking to grow.

“BHP has been very good at engaging the surrounding communities, and we have a good relationship with BHP,” he said.

“They’ve been very upfront with us on all the announcements that have come out.”

Lanigan has a population of 1,433 as of 2021, but Mycock said it wants to increase that number by 200-400, which he called an achievable goal with help from the mine.

Premier reacts

When asked about the delay on Wednesday, Premier Scott Moe said it comes at a very uncertain time given the global situation around market access, inflation and labour.

Moe said he wouldn’t speak for BHP, but thanked the company for its investment in the province.

“It’s the largest single investment ever in the history of the largest mining company in the world,” the premier said.

“It’s right here in Saskatchewan, and it’s the largest single investment that this province has ever seen as well. And it’s an investment that is only possible because of the security and the opportunity that is being provided in this province.”