The additional commitment in the Canadian potash project will double its production capacity to about 8.5Mtpa
BHP approves an investment of $4.9bn for stage two of the Jansen potash project. (Credit: BHP)
Australia-based resources company BHP has authorised a $4.9bn investment for stage two of the Jansen potash project (Jansen Stage 2) located in Saskatchewan, Canada.
According to the company, the additional commitment to the Canadian potash project will double its production capacity to about 8.5 million tonnes per annum (Mtpa). It is said to transform the Jansen project into one of the world’s largest potash mines.
The construction of the Jansen Stage 2 project is estimated to take nearly six years.
The project is scheduled to deliver the first production in 2029, followed by a ramp-up period of three years.
Stage two of the Canadian potash project will deliver about 4.36Mtpa of production.
BHP’s additional investment for the Jansen Stage 2 will fund the development of additional mining districts, and the completion of the second shaft hoist infrastructure to accommodate higher mining volumes.
It will also be utilised for the expansion of processing facilities as well as the addition of more rail cars.
Besides, the funding will be utilised to increase storage facilities at the port.
In October 2022, BHP approved an initial commitment of $188m to buy long lead equipment and begin process plant foundation works.
BHP CEO Mike Henry said: “The stage two investment advances BHP’s 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.”
Stage one of the Jansen potash project is 32% complete and advancing in line with its schedule, said the company.
BHP aims to achieve the first production from the Jansen Stage 1 in late 2026.
The company approved a $5.7bn investment for Stage 1 of the Canadian potash project in August 2021 and $4.5bn in pre-Jansen stage 1.