BHP’s Jansen potash mine passes halfway mark on way to 2026 production

BHP (NYSE: BHP; LSE: ASX; ASX: BHP) says the first phase of its massive Jansen potash mine in Saskatchewan has surpassed the halfway point of construction.

The world’s biggest miner noted that phase two was now underway with the project on track to reach first production in 2026, with expected potash output of 4.2 million tonnes a year.

BHP said the focus will now be on completing the mill building, processing plant and port construction, all while finalizing infrastructure and preparing to transfer the project to operations.

“Building one of the largest potash mines in the world requires an all-hands-on-deck approach, and the province has really come together to make a project of this magnitude possible,” BHP’s Potash president Karina Gistelinck said in a statement.

Construction of Jansen’s second phase is expected to take six years and deliver first production in 2029. The company has said this stage will cost $6.4 billion (US$4.9 billion).

Located 140 km east of Saskatoon, the Jansen project is set to become one of the world’s largest producers of potash, a commodity considered to be a pillar of future growth for the company. It also represents the single largest private economic investment in the province’s history.

Since giving the project its go-ahead in August 2021, BHP has been injecting capital to speed up its development even when potash prices were falling. Even before its approval, the group had spent $6.2 billion on the project.

The proposed potash mine is being built in four stages, with $7.8 billion already spent on the first stage alone. Last October, BHP announced plans to expand the project, approving a further $6.7 billion investment for stage two. This brings BHP’s total investment in Jansen to date to about $14 billion.

BHP anticipates that Jansen will become one of the world’s largest potash mines, producing 8.5 million tonnes per annum and boosting global production by an estimated 10%.

Potash is part of Canada’s critical minerals list due to its importance as a key soil nutrient, essential for ensuring global food security. Australia has not yet classified potash as a strategic mineral.