BHP confirms 2nd phase of Jansen Mine delayed to 2031

CTV News

17 hours ago

After facing delays earlier this year – BHP now says the second phase of its Jansen potash project will be pushed back two years until 2031.
The Australian mining conglomerate initially stated in July that it had moved its first production date from the mine to mid-2027 from an earlier estimate of late 2026.
At that time, the company said it was also considering pushing back its second phase deadline as well – amid concerns over increased costs.
On Tuesday, that decision was confirmed.
'While consumer inflation has fallen to close to two per cent in Canada, price growth for industrial construction works has been significantly stronger, increasing by over 10 per cent in the past two years in Saskatoon,' the company wrote in its annual report.
'This has placed upwards pressure on costs for Jansen.'
The project, initially estimated to cost $5.7 billion USD, has now risen to a range of $7 billion to $7.4 billion USD.
As of the report's publication, the mine's first stage is 68 per cent complete. Once complete, the mine will have a capacity of 4.15 Mtpa (million tons per annum).
The mine's second stage, currently at 11 per cent complete, will see the development of more mining districts, expanded processing facilities and rail infrastructure to boost the mine's output inclemently to 4.36 Mtpa.
According to its report, BHP expects the mine to serve as one of the industry's lowest-cost producers once production is fully ramped up.
NDP calls on Moe for answers
The Saskatchewan NDP called on Premier Scott Moe to speak on the project's delays – saying the mine is simply too 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,' NDP MLA Trent Wotherspoon told reporters Tuesday.
'Unfortunately, this isn't the first major project to take a hit under the Sask. Party's watch.'
The NDP also highlighted other large infrastructure projects that have been put on hold in recent months – including FCL's renewable diesel and canola crush facilities in addition to Viterra's canola crush plant.
'I hope he is straight with the people of Saskatchewan and answers for this string of bad economic news,' Wotherspoon added.
'Whatever the explanation, these projects are key to our province's economic future and we need answers.'