BHP to Invest $4.9 Billion for Phase 2 of Major Canadian Potash-Mining Project

Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, BHP Group Limited (Melbourne, Australia) announced it plans to invest US$4.9 billion (C$6.4 billion) for the second phase (Stage 2) of its under-construction Jansen potash-mining project in Saskatchewan, Alberta. The US$5.7 billion (C$7.5 billion) first phase (Stage 1) kicked off last year.

"Today's additional investment will transform Jansen into one of the world's largest potash mines, doubling production capacity to approximately 8.5 million tonnes per annum," the company said in a press release.

Jansen Stage 1 is 32% complete and progressing in line with its schedule, the company said, with first production expected in late 2026. BHP expects construction of Stage 2 to take approximately six years, with first production in 2029--followed by a "ramp up period" of three years.

BHP said the Jansen Stage 2 investment "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." The company approved an initial funding commitment of US$188 million last year to procure long lead equipment and to begin process plant foundation works.

The company also is evaluating two additional expansions at the Jansen mine, which would bring the production capacity to 16 million to 17 million tonnes per annum.

The investment also includes funding to increase storage facilities at Westshore Terminals in Delta, British Columbia, home to BHP's main port facility that will be used to ship potash from the Jansen project to customers. The company said it will evaluate such projects closer to Jansen Stage 2's first production.

A Canadian unit of engineering, procurement and construction (EPC) company Jacobs Solutions Incorporated (NYSE:J) (Dallas, Texas) is at work constructing the brownfield potash export facility, which will receive the potash by rail and feature storage capacity of 4.5 million tons per year. The project entails modifying site infrastructure.

Engineering, procurement and construction firm Fluor Corporation (NYSE:FLR) (Irving, Texas) announced last week it was selected to develop Jansen Stage 2. For more information on Fluor's project activity, see August 7, 2023, article - Fluor Eyes CCS, Critical Mineral Markets as Backlog Grows.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here to read detailed information on the four Jansen mining projects and the related export facility.

In January, the Canadian government announced US$73.9 million (C$100 million) in funding for the Jansen Stage 1 project, saying: "This support will lead to the production of critical minerals that will support transformation and growth across the Canadian economy, while enabling BHP to transform its own operations, reduce greenhouse gas emissions and prepare for a net-zero future."

The government's sentiment is in line with Metals & Minerals Industry project activity in Canada being tracked by Industrial Info, which is being buoyed in part by the energy transition. For more information, see October 11, 2023, article - Energy Transition Fuels Canada's Metals & Minerals Industry.

Industrial Info is tracking US$27.25 billion worth of projects from BHP and its subsidiaries worldwide. Subscribers can click here for a full list.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).