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. Jansen S1 is expected to produce 4.35-million tonnes a year of potash.

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
BHP has awarded several contracts at its Jansen potash project businesses that will help indigenous people benefit from its presence in the region.

The company has awarded Wicehtowak Frontec Services (WFS), a joint venture partnership between ATCO Frontec and George Gordon Developments (GGDL), a multiyear base contract of C$86-million to provide camp support services at its BHP Jansen Discovery Lodge.

BHP's Discovery Lodge, originally designed and built in 2012 by ATCO Structures, features diverse, high-end amenities, and accommodates up to 2 500 workers.

WFS will provide management and administration, food services, programming, housekeeping and janitorial, and maintenance work for the facility.

The current contract will support about 130 local jobs, with 70% planned to be Indigenous.

BHP has awarded 2Nations Bird – a partnership between TSX-listed Bird Construction, Beardy & Okemasis Cree Nation's Willow Cree Developments General Partner, and Fishing Lake First Nation's Development Corporation and FLFN Ventures – two contracts for works on the Jansen S1.

2Nations Bird will do the concrete foundations work for four main nonprocess buildings at Jansen, a contract valued at about C$62-million. The partnership has also been awarded a three-year site services agreement, with 2Nations Bird being responsibile for general site services during the execution of Jansen Stage 1, as well as the maintenance of a variety of facilities currently in operation to service the site. The three-year service agreement is valued at more than C$110-million.

2Nations Bird has engaged with KDM Constructors as the designated subcontractor. KDM has been involved in the project with BHP for over seven years, providing contract services for the Jansen site.

KDM brings together Kawakatoose, Day Star and Muskowekwan Nations along with the Saskatchewan-based SECON Group of Companies. George Gordon Developments, the economic development arm of the George Gordon First Nation, will also be a subcontractor on the site services agreement.

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).; Wicehtowak Frontec Services, a joint venture partnership between ATCO Frontec and George Gordon Developments (camp support services at BHP’s Jansen Discovery Lodge); 2Nations Bird, a partnership between Bird Construction, Beardy & Okemasis Cree Nation's Willow Cree Developments General Partner, and Fishing Lake First Nation's Development Corporation, FLFN Ventures (works on the Jansen Stage 1 and site services); KDM Constructors, comprising Kawakatoose, Day Star and Muskowekwan Nations, along with the Saskatchewan-based SECON Group of Companies (subcontractor to 2Nations Bird); and George Gordon Developments (subcontractor for the site services agreement).

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