Exchange release
31 October 2023
BHP approves US$4.9 billion
investment in stage two of Jansen potash project
BHP has approved an investment of US$4.9 billion (C$6.4 billion) for stage two of the Jansen potash project (Jansen Stage 2) in Saskatchewan, Canada.
This follows BHPs approval of US$5.7 billion (C$7.5 billion) for stage one of the Jansen potash project (Jansen Stage 1) in August 2021 and
a pre-Jansen Stage 1 investment of US$4.5 billion (C$4.9 billion).
BHP Chief Executive Officer, Mike Henry said:
This is an important milestone that underscores our confidence in potash and marks the next phase of the companys 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.
The stage two investment advances BHPs strategy to increase its exposure to commodities positively leveraged to the global megatrends of population
growth, urbanisation, rising living standards and decarbonisation. Potash, used in fertilisers, will be essential for food security and more sustainable farming.
Todays additional investment will transform Jansen into one of the worlds largest potash mines, doubling production capacity to approximately 8.5
million tonnes per annum (Mtpa)1.
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.
Jansen Stage 1 is 32% complete and progressing in line with its schedule. First production from Jansen Stage 1 is expected to be delivered in late CY2026.
Construction of Jansen Stage 2 is anticipated to take approximately six years, and is expected to deliver first production in FY2029, followed by a ramp up period of three years.
Jansen Stage 2 is expected to deliver approximately 4.36 Mtpa of production at a capital intensity of approximately US$1,050/t, lower than Jansen Stage 1, due
to the leveraging of existing and planned infrastructure2. In October 2022, BHP approved an initial funding commitment of US$188 million to procure long lead equipment and commence process plant
foundation works. The additional US$4.9 billion investment for Jansen Stage 2 will be used for the development of additional mining districts, completion of the second shaft hoist infrastructure to handle higher mining volumes, expansion of
processing facilities and the addition of more rail cars.
Westshore Terminals, in Delta, British Columbia, remains BHPs main port facility to ship
potash from Jansen to customers. The Jansen Stage 2 investment includes funding to increase storage facilities at the port. BHP will not be initiating a formal capacity extension for the Westshore port terminal at this time and will evaluate closer
to Jansen Stage 2 reaching first production.