The Jansen project is the biggest mining investment in Saskatchewan's history
Diversified mining major BHP announced on Tuesday that it has approved an investment of $4.9-billion for Stage 2 of the Jansen potash project in Saskatchewan, Canada.
The company has already invested $10.2-billion in Jansen, which includes the approval of $5.7-billion for Stage 1 in August 2021 and a pre-Jansen Stage 1 investment of $4.5-billion.
CEO Mike Henry said in a statement that the investment approval underscored BHP’s confidence in potash, which is a key component in the group’s strategy to invest in future-facing commodities that are linked to global megatrends of population growth, urbanisation, rising living standards and decarbonisation.
The additional investment would transform Jansen into one of the world’s biggest potash mines, doubling production capacity to about 8.5-million tonnes a year, he said.
Longer term, Jansen has the potential for two additional expansions to reach an ultimate production capacity of 16-million to 17-million tonnes a year.
BHP President Americas Ragnar Udd added that the expansion of Jansen not only reinforced the mining major’s confidence in potash, but also its optimism in Canada as a premier investment jurisdiction.
The Jansen project is the biggest mining investment in Saskatchewan’s history, noted Energy and Resources Minister Jim Reiter.
“BHP’s decision to further proceed with Jansen Stage 2 highlights Saskatchewan’s enormous potential as a leader in providing sustainably produced potash and critical minerals the world needs,” he added.
Production from Jansen Stage 1, which is 32% complete, is expected in late 2026. Construction of Jansen Stage 2 will take about six years, and is expected to deliver first production in 2029, followed by a ramp-up period of three years.
Jansen Stage 2 will deliver 4.36-million tonnes a year of production at a capital intensity of $1 050/t, lower than Jansen Stage 1, owing to the leveraging of existing and planned infrastructure.
The additional $4.9-billion investment for Jansen Stage 2 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.
BHP noted that Westshore Terminals, in Delta, British Columbia, remains the main port facility to ship potash from Jansen to customers. The Jansen Stage 2 investment includes funding to increase storage facilities at the port. BHP will not be initiating a formal capacity extension for the Westshore port terminal at this time and will evaluate closer to Jansen Stage 2 reaching first production.