Name of the Project
Jansen potash project.

Location
About 140 km east of Saskatoon, in Saskatchewan, Canada.

Project Owner/s
Multinational mining company BHP.

Project Description
The Jansen potash project has an estimated measured resource of 5.17-billion tonnes and an inferred resource of 1.27-billion, both grading 25.7% potassium oxide, 7.1% insolubles and 0.07% magnesium oxide.

Jansen Stage 1 (S1) will produce about 4.35-million tonnes a year, and has a basin position with the potential for further expansions, subject to studies and approvals.

Jansen S1 includes the design, engineering and construction of an underground potash mine and surface infrastructure, including a processing facility, product storage building and continuous automated rail loading system. Jansen S1 product will be shipped to export markets through Westshore, in Delta, British Columbia.

The Jansen S1 project will convert about 20% of the 5.23-billion tonnes in measured and indicated mineral resources into ore reserves. 

The project is expected to operate for about 100 years. It includes a separate scope of work for the excavation and lining of the production and service shafts, while the installation of essential surface infrastructure and utilities will continue.

Potential Job Creation
Jansen will create at least 3 500 jobs during peak construction and 600 in operation. The project will have a gender-balanced workforce and about 20% of employees will be local First Nations members. 

Net Present Value/Internal rate of Return
The investment decision will generate an internal rate of return of 12% to 14% and have an expected payback period of seven years from first production.

Capital Expenditure
The project is expected to cost up to $5.72-billion in its first phase. The project includes funding for the required port infrastructure.

Excavation and lining of the production and service shafts, as well as the installation of essential surface infrastructure and utilities, are estimated to cost $2.97-billion.

Planned Start/End Date
The Jansen shaft project was completed in the June 2022 quarter.

Jansen S1 was approved in August 2021 and BHP is targeting first production in 2026.

Latest Developments
© as the group sees an attractive entry opportunity for supply in lower-risk jurisdictions amid increased geopolitical uncertainty.

The company, which previously brought forward first production at Jansen S1 from 2027 to the end of 2026, has confirmed that the feasibility study for Jansen S2 will be completed a year earlier than previously planned.

Feasibility studies for Jansen S2 have started and will be completed during the 2024 financial year, BHP has said in a statement.

At the end of December 2022, the Jansen S1 project was tracking to plan. During the first half of the 2023 financial year, capital expenditure (capex) was $364-million, largely for surface and civil works and acceleration of procurement contracts.

BHP has increased the Jansen S1 capex guidance for the 2023 financial year from $740-million to $860-million, partly owing to an accelerated production schedule.

Work in the 2023 financial year will continue to focus on civil and mechanical construction on the surface and underground, as well as equipment procurement and port construction.

BHP has awarded $2.5-billion in contracts, covering the port, underground, mining systems and other construction activities.

Key Contracts, Suppliers and Consultants
DMC Mining Services (development of two new mine shafts); SNC-Lavalin (feasibility study for Jansen S1, as well as engineering, procurement and construction management services for S1); and Cementation Americas (post-liner excavation and steel and equipping).

Contact Details for Project Information
BHP, tel +61 3 9609 3333.