BHP’s Jansen Potash Mine Faces Further Delays, Cost Overruns

3 weeks ago

1 minute read

Recently, after BHP revealed cost overruns and delays for its Jansen potash mine, the company is reporting even more setbacks.

According to its annual report, Stage 2 of the multi-billion-dollar project southeast of Saskatoon is now being delayed by two years, shifting the production start from 2029 to 2031. The company says Stage 2 is currently only 11 per cent complete.

This comes after BHP announced in July that Stage 1 of the project would be pushed back to mid-2027, a year later than planned. At that time, it also warned of a cost overrun of up to $1.7 billion, raising the price tag from $5.7 billion to between $7 and $7.4 billion.

“The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period,” the company stated in its report.

Stage 1 is now 68 per cent complete.

BHP says Stage 2’s capital expenditure is still under review, with an estimate expected in the second half of 2026. In the meantime, underground and surface construction will continue, including structural, mechanical, and electrical work for the dry and wet mill areas.

Once complete, the Stage 2 expansion is expected to double production capacity to about 8.5 million tonnes a year. The Jansen mine is considered central to BHP’s strategy of diversifying beyond copper and iron ore, with ambitions to become the world’s largest potash producer.