Mining giant BHP has agreed to invest $4.9bn (A$7.74bn) in the second stage of the Jansen potash mine in the Canadian province of Saskatchewan.
The stage two construction is expected to take around six years and deliver first production in 2029. This will be followed by a three-year ramp-up period.
Upon completion, stage two is anticipated to have a production capacity of around 4.36mtpa. Compared with stage one, its capita intensity will be lower at nearly $1,050 per tonne.
With stage two investment, BHP looks to double its potash production capacity to 8.5mtpa.
The $4.9bn investment will be utilised to develop more mining districts, expand processing facilities, complete second shaft hoist infrastructure to manage additional mining volumes and add more rail cars.
It will also be used to increase storage facilities at Westshore Terminals, in Delta, British Columbia, which is BHP’s main port to ship production from Jansen.
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By GlobalData
The miner invested $5.7bn in the first stage of the project in August 2021 and $4.5bn in pre-Jansen stage one.
Presently, stage one of the Jansen project is 32% done and moving forward as per its schedule. First production from this stage is projected to occur in late 2026.
In October 2022, BHP approved $188m in initial funding to purchase long lead equipment and start process plant foundation works.
In the longer term, the company is targeting another two expansions at Jansen to grow production to 16–17mtpa.
BHP CEO Mike Henry said: “This is an important milestone that underscores our confidence in potash and marks the next phase of the company’s growth in Canada. 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.
“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.”
In addition, the company stated that Jansen will have around 50% less operational (scopes one and two) greenhouse gas emissions per tonne of product and its freshwater consumption will be up to 60% lower than an average potash mine in the province.
